By Dominique Gabriel G. Bañaga

Negros Occidental Governor Alfredo Marañon, Jr., said he supports the proposal by Negros Occidental 3rd District Rep. Alfredo Benitez to lower the proposed excise tax on sugar sweetened beverages (SSB) from 10 percent to five percent per liter.
In a press conference yesterday morning, the governor said he also backs the Benitez proposal to allocate 15 percent of proceeds from excise tax on SSB for the Sugar Industry Development Act (SIDA).
“Like in the sin taxes from tobacco, tobacco producing provinces are given their share,” Marañon said.
The governor believes SSB will only have a minimal impact on the sugar industry.
Sugar mills have already announced the end of the harvest season with Victorias Milling Company closing on June 11, First Farmer’s on May 28, and the Central Azucarera de La Carlota Sugar Central last May 21.
Marañon emphasized the proposed P10 excise tax on SSB is “high,” and it may lower the consumption and sales of sugar, which would affect the industry.
Negros Occidental produces about 60 percent of the country’s sugar output.

Revenue should go to milling districts, says Paduano
Meanwhile, Abang Lingkod party-list Rep. Stephen Paduano proposed a separate amendment where a 15 percent share in the projected P3.5 billion incremental revenue, from the P10 per liter excise tax on SSB, be given directly to sugar milling districts through the Sugar Regulatory Administration (SRA).
In an email sent by Paduano last night, he said his proposal will ensure an equitable distribution of the SSB excise tax among sugar milling districts in the country.
“This will ensure that everyone benefits, especially those mostly affected by the SSB excise tax,” Paduano explained.
He also proposed, instead of a P10 per liter excise tax on SSB, a P5 per liter tax be imposed on SSBs using locally-produced sugar.
For SSBs using the high fructose corn syrup, Paduano suggested a 50 percent excise tax at P5, 40 to 49 percent at P8, and 39 percent and below at P10.
Paduano further proposed the 15 percent share for the sugar farmers be collected from the total SSB excise tax revenue and form part of the Sugar Amelioration Fund for the sugar workers and sugar mill workers, with the remaining collection distributed to the general fund and other priority programs of the national government.
The Committee on Ways and Means earlier adopted the Department of Finance proposal, as included in the Tax Reform for Acceleration and Inclusion (TRAIN) bill, where 50 percent of the tax collection from the P10 per liter excise tax on SSB will accrue to the general fund.
As to the other 50 percent of the tax collection from the SSB excise tax, the committee agreed 85 percent of the proceeds will be allocated to priority programs for national government programs, while the remaining 15 percent will be for sugar farmers.
The Department of Finance (DOF) said the P10 excise tax per liter will yield P47 billion in the first year of implementation.
Furthermore, the 15 percent allocation earmarked for sugar farmers from the projected P47 billion will yield P3.5 billion, according to DOF Undersecretary Karl Kendrick Chua./WDJ