Businessmirror july 08, 2017

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The bitter side of sugary-drinks tax W

By VG Cabuag

hen schools started to ban soft drinks in their respective canteens some three years ago, the teachers themselves started to smuggle in and hoard in their respective drawers the very thing that they ask their students not to consume. tax-reform package, called Tax Reform and Acceleration and Inclusion Act (TRAIN), a House bill has been filed to slap tax on these sugary drinks as part of the revenuegeneration initiatives.

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They need the sugar to teach, some of them say, not minding their school administration’s policies that also affected them, as they cannot purchase soda drinks anymore within the school premises. This time around, as the Duterte administration makes headway into its comprehensive

‘Antipoor’

A bill filed by Sultan Kudarat Rep.

Horacio Suansing Jr. and Nueva Ecija Rep. Estrellita Suasing seeks to impose a P10 tax on sugarsweetened beverages, the rate of which will be increased every year by 4 percent. That caught the attention of many corporate chief executives, many of whom were previously silent whenever the government plans to introduce new taxes. Some of these corporate top honchos even called the move as antipoor. “We have many concerns. First of all…it affects the masses most. The proposed tax increase here is six times what was proposed in Mexico. At the end, who are the primary consumers of ready-to-drink beverages, it’s the masses of the Filipino people. Just imagine if I drink one coffee a day and I have to pay P3 or P4 more times 365, that’s P1,500 a year. That’s the breakfast of the masses,” said Lance Gokongwei, president and CEO of food group

Universal Robina Corp. (URC). Gokongwei, also president and COO of the family’s holding firm JG Summit Holdings Inc., was referring to Mexico’s same plans on sugar tax, but at a much lower rate. “The effective increase we’re looking at is P10 a liter in a per capita basis. The average capita per income here is $3,000. We always cite Mexico. The effective tax there was P1.45 per liter in a country where capita per income was $10,000,” Gokongwei said. URC sells products such as C2 iced-tea beverages, which at one time outsold Coke in the Philippines, and Great Taste coffee mixes, among other sugary products. Its products are now being sold across Southeast Asia, including in Vietnam, where it has a manufacturing plant. Sugar-sweetened beverages refer to nonalcoholic drinks that contain caloric sweeteners, added Continued on A2

Govt campaign in Marawi City goes deeper, farther beyond the battlefield

Crushing the Maute-IS ‘ideology’

T

By Rene Acosta

he ongoing quest by the military and the police to clear Marawi City of the MauteIslamic State (IS) group, which tried to wrest control of the city from the government, has brought into focus how the Moros, especially those who have been radicalized, have devised means—including one that is extreme—to pursue their violent Islamic ideology. While the Islamic caliphate of Mindanao, in particular, and initially of Lanao del Sur, which is being pushed and espoused by the

group under Southeast Asia’s ISrecognized leader Isnilon Hapilon, may have already lost its cause, it has, however, also forced the gov-

PESO exchange rates n US 50.6350

ernment to ponder on and address the ideology that is fueling what has already morphed into an “Islamic terrorism”. A lost cause because, other than the being waged with physical extermination of the leaders and followers of the Maute-IS group by the Armed Forces through its ongoing massive operation, the group has also permanently lost what is supposed to be its mass base of support—the people of Marawi—whom it may unlikely win over. As the battle for the city unfolds and crackles to its end, the episode has also unleashed and unearthed the fury of the terror-

ists through their killings of Moros and Christians alike, their taking of hostages and their attempt to further wedge the long-held notion of division between the Moros and Christians by attacking and burning a Roman Catholic cathedral in the heart of Marawi.

Rape

Revealing harrowing tales by those who have been rescued or have managed to escape from the captivity of the group, the military, through Lt. Col. Jo-ar Herrera, spokesman of the Joint Task Force Marawi, had disclosed that women hostages have been turned See “Maute,” A2

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CHIEF EXECUTIVES SPEAK OUT VS PROPOSED TAX ON SUGAR-SWEETENED BEVERAGES

President Duterte gestures while addressing Filipino Muslim leaders during a reception at the Presidential Palace to celebrate the end of the Holy Month of Ramadan, known as Eid al-Fitr, in Manila on June 27. Duterte promised to rebuild Marawi City, as the siege by Muslim militants continues for over a month now. AP/Bullit Marquez

n japan 0.4473 n UK 65.6888 n HK 6.4834 n CHINA 7.4425 n singapore 36.6389 n australia 38.4066 n EU 57.8454 n SAUDI arabia 13.5030

Source: BSP (7 July 2017 )


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