Tax evasion agad? Lower soda tax may be due to lower demand too
This analyst said there is more to the story that led to a P10-billion shortfall in excise tax collections.
Nicky Franco, head of research at Abacus Securities, doubted the hunch of Finance Undersecretary Karl Kendrick Chua that big beverage firms are not paying the right taxes for their sugar-sweetened products.
Chua came out with a statement calling upon the Bureau of Internal Revenue to look into the tax payments and sales of the big bottlers here to see if they are paying the right excise taxes for their sugar-sweetened or high-fructose corn syrup-laced drinks. Chua said his hunch was some were avoiding the higher P12 per liter by declaring that their drink formula only qualified under the P6 per liter tariff.
This comes as tax collections are barely at P30 billion as of October, versus the P40 billion target.
“Or maybe demand for sugar sweetened beverages fell more than expected?,” Franco said in a tweet.
Or maybe demand for sugar sweetened beverages fell more than expected? https://t.co/1IYCNU18y9
— Nicky Franco (@HoR_102) January 3, 2019