URC urges lawmakers to reconsider higher taxes on beverages, salty foods

MANILA, Philippines - Universal Robina Corp. (URC), the food and beverage arm of the Gokongwei Group, is urging government and lawmakers to consider the industry’s position on the proposed higher excise tax on sugar sweetened beverages (SSBs).

The company, one of the largest branded consumer food and beverage firms in the Philippines, also expressed concern over a proposal to impose new excise tax on the salt content of manufactured and processed foods.

URC president and chief executive officer Lance Gokongwei said the group’s primary concern is that the proposed higher taxes would affect the masses the most.

“With regards to the (SSB) excise tax, we think it should be carefully examined. We think it’s very high and anti-poor in many cases…they could affect the most poor of our countrymen,” he said.

Under the first package of the tax reform program approved in the House of Representatives last month, a P10 per liter excise tax of volume capacity will be imposed on SSBs.

“The proposed tax increase here is six times what was proposed in Mexico and at the end, who are the primary consumers of ready- to-drink beverages? It’s the masses, so just imagine if I drink one coffee a day and I have to pay P3 or P4 more, times 365 days, so that’s P1,500 a year. That’s three days worth of salaries,” Gokongwei said.

“There are issues that many companies that produce beverages are pointing out and we’re hopeful that our legislators will consider that in formulating the final versions of these laws. It should just be considered and reviewed I think, that should be taken into consideration,” he added. 

Meanwhile, a separate bill seeking to impose new excise tax on the salt content of manufactured and processed foods has been filed in Congress.

“I have not seen any details of that. Well, any tax on that will impact everybody. Any food you eat has salt. From the tocino to vienna sausage or corned beef or instant noodles, all of that has salt,” Gokongwei said.

URC has market leadership in salty snacks, candies, chocolates, canned beans and ready-to-drink tea while maintaining strong positions in coffee, biscuits and noodles.