Sugar producers buck import plan raised by Diokno

By Macon Ramos-Araneta

THE United Sugar Producers Federation (UNIFED opposes suggestions to allow industrial users or manufacturers to directly import sugar as a compromise to the government’s plan to raise duties and broaden the tax base for sweetened beverages.

Meanwhile, Senate Minority Leader Aquilino “Koko” Pimentel Iii said President Ferdinand Marcos Jr. has not made any headway in our problems in the agricultural sector.

In a statement, UNIFED president Manuel Lamata appealed to the President to disregard Finance Secretary Benjamin Diokno’s remark describing sugar trade liberalization as a “reasonable compromise” in lieu of the planned higher taxes on sugary drinks.

Lamata said they were “totally against the move of Diokno to liberalize importation in favor of a few industrial users.”

The Department of Finance was eyeing an increase excise taxes for sweetened beverages under the Tax Reform for Acceleration and Inclusion (TRAIN) Law by P12 per liter, regardless of the type of sweetener used, remove,exemptions, and index the rate by four percent annually.

The TRAIN law mandates a P6-per liter excise tax on beverages using caloric and non-caloric sweeteners, and P12 per litertax on beverages using highfructose corn syrup.

Diokno said higher tax rate and broader base was a reasonable compromise, but added that he was still in favor of sugar importation.

Under the current system, the Sugar Regulatory Administration (SRA) controls the importation of sugar and determines the volume to be imported after assessing the local industry’s capability to satisfy the country’s consumption demands.