Businessmen Bitter On Higher Taxes To Sugary Food

The proposal to impose higher taxes to fatty and sugary foods including soft drinks to promote better collection and health is killing the businessmen softly.

The Department of Finance (DOF) eyes to impose higher taxes on fatty and sugary foods to improve the government’s tax collection and promote better health conditions in the country.

According to the rough estimates made by the DOF, the consumption tax package is expected to generate P109.4 billion in revenues.

fatty foods

Although the proposals on higher taxes on sweetened beverages are sweet to the ears of health advocates and government fiscal managers, these are seen dampening the earnings prospects of key producers of branded consumer goods and sugar in the country.

In the last three weeks, shares of Universal Robina Corporation (URC), a company sanctioned by the Gokongweis, have declined and the blame is partly put on tax concerns.

Jose Mari Lacson, head of research at ATR Asset Management, said” There are growing concerns over the short- to medium-term outlook for earnings in URC because pf the planned tax on sugar beverages, impact of the Snackbrands acquisition and surprise weakness in Vietnam beverage sales in the second quarter 2016”.

Snackbrands is a leading snack food manufacturer in Australia.

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