Excise Tax Collections From Sugary Drink Below Target, Bureau Of Internal Revenue (BIR) Making Investigation On Makers
SUGARY DRINK – Sugary drink makers are under investigation by the Bueau of Internal Revenue (BIR) to see if the manufacturers are paying the correct taxes.
The Department of Finance (DOF) recently issued an order to the BIR, citing that the excise tax collection from sugar-sweetened drinks from January to October of 2018 amounted to ₱29.9 billion, which is lower than the targeted ₱40 billion for last year’s period.
Karl Kendrick T. Chua, DOF Undersecretary, said that the collection did not reach the goal possibly because beverage makers might not be paying the appropriate taxes.
According to Inquirer, under the Tax Reform for Acceleration and Inclusion (TRAIN) Act, beverages that have high-fructose corn syrup (HFCS) must pay
₱12 a liter in excise tax. On the other hand, beverages that have caloric and noncaloric sweeteners must pay ₱6 a liter.
Chua had a hunch that the manufacturers who is supposed to pay ₱12 in tax only paid ₱6.
Chua, in a report to DOF Secretary Carlos G. Dominguez III, said that only Coca-Cola was able to secure its approval from the Food and Drug Administration (FDA) to convert the sweetener it uses in its drinks from HFCS to sugar or other caloric and noncaloric sweeteners last October.
Chua further added that the other drink companies,, who were identified by the FDA to be using HFCS will have to apply for the approval to convert to
sugar or other caloric and noncaloric sweeteners since Coke is the only one who has the approval. He noted that these drink companies paid ₱6 when they are supposed to pay ₱12.
As per the report, BIR Deputy Commissioner Arnel Guball said in respone that they already began checking the tax payments of beverage manufacturers and sending deficiency assessments to correct the tax discrepancies.
What do you think?
READ ALSO: Coke Hopes For Settlement Among Stakeholders In The Sugar Industry Soon
For more news and updates, follow us on Twitter:@philnews_phand Facebook:@PhilNews