Senators are currently eyeing the imposition of taxes on ‘junk food’ to help raise funds that will alleviate the economic impact of COVID. However, senators stressed that taxes must be carefully calibrated.
“The other possible sin tax that government may possibly look at is from junk food, which has zero nutritional value and targets the youth. It has been proven that junk food causes obesity and other heart ailments,”states Sen. Sherwin Gatchalian, Vice Chairman of the Senate Committee on Economic Affairs, in an article by Philippine Star.
Moreover, in the same article, the Department of Finance reported that excise tax collections from products such as tobacco, alcohol, and sweetened beverages have raised Php 269.1 billion in revenues. Finance officials speculate that sin taxes can raise up to Php 332.3. The sin taxes will also cover e-cigarettes, plus a scheduled increase in alcohol and tobacco excise tax. Read more: ‘Junk food’ tax eyed for COVID funds, an article by Philippine Star.
The funds raised will be used to implement the Universal Health Care Law.