Taxes are important. It doesn’t take a genius to understand its importance to a country and the people it serves. We all have talked about it in high school and for some a lot in college. Well, there is nothing really worrisome about the nature of taxation until you start working. I always remember when I was still working in the corporate world, my tax deductions were scarier than my house bills. But of course, I didn’t complain. That’s how my salary grade was legally computed. I learned to cope.
Now everybody knows that being a single mom is not that easy. We may have this “strong” aura, but definitely, we still cry foul whenever we can. It just so happens that we rarely do it for the world to hear. In my case, to God and few close friends. But for now, I decided to blog about my take on the Beverage Tax here in my beautiful country, the Philippines.
What is the Beverage Tax? It simply means adding 10 pesos excise tax on every liter of sugar-sweetened beverages and for some 20 pesos. So, what is excise tax? According to BIR, “Excise Tax is a tax on the production, sale or consumption of a commodity in a country.”
To visually explain this to consumers like us, check out my sample computation below:
17.50 – price of a 500ml bottled juice
22.50 – approximate price of a 500ml bottled juice after beverage tax
The difference? A whopping 5 pesos on every bottle! If you are like me with three kids, that is additional 15 pesos for three 500ml bottled juice. If I include myself, that would be 20 pesos! Instead of paying 70 pesos, I will end up approximately paying 90 pesos! That is rather insane, isn’t it?
Now let us factor in other beverages that are regular on your grocery lists like instant coffee and powdered juice. Imagine how much amount of money you’ll be paying? If you like drinking carbonated drinks, energy drinks, and or tetra-packed juices? Yes… I can imagine you having a shocked face right now! 😯 I know because I did. Hahaha…
Anyway, am I against the Beverage Tax? My answer would probably be both YES and NO. Let me explain the NO first. NO, because I am all out supporting taxation. A good citizen should know that it is important to pay taxes for the betterment of its country. YES, because I believe that they should review this further. I know that experts studied this but I believe that they should meticulously dissect this more. The current Beverage Tax can greatly affect consumers like us. I always believe that there is more than one way to skin a cat.
What about you guys? What do you think about the Beverage Tax here in the Philippines?