• GILBERT P. BAYORAN
Negros Island solons are up in arms against the sugar import liberalization proposed by Finance Secretary Benjamin Diokno, which will allow food and beverage manufacturers to directly import sugar.
House Resolution No. 1199, authored and filed by Negros Representatives Jose Francisco Benitez, Joseph Stephen Paduano, Greg Gasataya, Gerardo Valmayor Jr., Alfredo Marañon III, Juliet Marie Ferrer, Emilio Bernardino Yulo, Mercedes Alvarez, Michael Gorriceta, Jocelyn Limkaichong, and Manuel Sagarbarria, said the liberalization of importation of sugar will have a negative impact on the domestic sugar industry.
Diokno explained that his proposition forms part of the finance department proposal to increase the tax rate of sugar sweetened beverages, to sweeten the deal with food and beverage manufacturers that will bear the burden of higher tax.
“But what about our sugarcane farmers? What is our deal with them?” Rep. Benitez asked.
RA 10963, known as the Tax Reform for Acceleration and Inclusion (TRAIN), imposed of a tax of P6 per liter of sweetened beverages using purely caloric, or noncaloric sweeteners, of a combination thereof, and a tax of P12 per liter for sweetened beverages using high fructose corn syrup (HFCS).
The law mandates that for the first five years of its effectivity, programs under RA 10963, or the Sugarcane Industry Development Act, shall be among the social welfare programs that shall be funded by 30 percent of TRAIN revenues.
The Negros solons however said only P3.92 billion had been allocated between 2018 and 2023 for SIDA programs, despite revenues from taxes on sweetened beverages comprising 52 percent of the P336.1 billion total revenues from excises taxes under the TRAIN law during the same period.
“Instead of assuring us of ploughing back revenues from tax on sweetened beverages to strengthen the sugar industry, Secretary Diokno is offering liberalization of sugar importation,” Benitez said.
Explaining further his position, Benitez expressed fears that liberalizing sugar importation without adequate support for our local sugarcane farmers will weaken the domestic sugar industry.
“Sugar production this year is projected to decrease due to El Niño and our limited milling capacity. But instead of helping our sugar producers, flooding our market with imported sugar will kill our domestic sugar industry,” he said.
Citing a study commissioned by the National Economic and Development Authority in 2021, it cautioned against sugar trade liberalization, stating that liberalization “would favor the rich more than the poor, and will be at a clear cost to the sugar industry stakeholders.”
While sugar-exporting countries can sell their surplus sugar at prices below production cost because of massive subsidies and protectionist policies. Tayo, ano ang ginagawa natin sa industriya ng kalamay natin (what are we doing for our sugar industry)?” Benitez lamented.*
