THE National Federation of Sugar Workers (NFSW) in Negros Occidental is urging the government to prioritize support for the sugar industry instead of passing on additional burden such as taxes among industry stakeholders especially small sugarcane planters.
John Lozande, secretary general of NFSW, yesterday said the bill imposing excise tax on sugar sweetened beverages is similar to other previous measures of the government like the recently imposed 12 percent value added tax on refined and raw sugar, which is adversely affecting the industry.
House Bill (HB) 3365, proposed by Nueva Ecija First District Representative Estrellita Suansing, inserts a new section in the National Internal Revenue Code of 1997, seeking to impose an excise tax of P10 per liter of volume capacity on soft drinks and other sugar-sweetened beverages, and to increase the rate to four percent every year starting 2017.
The sugar workers group has expressed fear that it may affect agrarian reform beneficiaries (ARBs) in the province who are currently suffering from rising prices of agricultural inputs and not having adequate support services from the government.
“Our position is really to scrap the proposed law as it most likely will affect sugarcane workers comprising 60 percent of the residents living in rural areas of the province,” Lozande said, adding that “they are the ones mostly consuming carbonated and sweetened beverages like soft drinks.”
He further said their group believes the excise tax will only benefit “corrupt government officials since there is no assurance that it will be used for subsidy and incentives to sugar farmers and producers.”
The NFSW will stage a protest rally to protest HB 3365 simultaneous with the commemoration of the Mendiola Massacre in January next year.