PHILIPPINES: SRA says tax reform law will benefit sugar industry
Published: 01/12/2018, 3:06:03 PM
Administrator Hermenegildo Serafica, of the Sugar Regulatory Administration (SRA), said he is happy about the TRAIN (Tax Reform Acceleration and Inclusion) Law, and its benefits to the country's ailing sugar industry, according to the Philippines' Star newspaper.
Serafica disclosed that Pepsi Cola had signified to SRA that it would scrap using high fructose corn syrup (HFCS) and use locally manufactured sugar instead. HFCS orders have been rerouted to Pepsi-Vietnam, it said.
Coca-Cola, for its part, had returned its HFCS back to China, while RC Cola will re-export their HFCS and also use locally manufactured sugar. All in all, these companies use around 9-million metric tonnes of sugar and buying it locally would help revive the country's sugar industry, said Serafica.
These companies balked at using HFCS, which they might get cheaper from their sources, but will pay a hefty tax of PHP12 (US$0.24) per bottle under TRAIN. Those sweetened with locally manufactured sugar, on the other hand, will only be taxed PHP6 per litre.