Negros Island representatives, along with lawmakers from other sugar producing provinces, have united to strongly oppose Finance Secretary Benjamin Diokno’s proposal to allow the liberalization of sugar importation.
Rep. Jose Francisco Benitez (Neg. Occ., 3rd District) led his colleagues in filing House Resolution No. 1199 on Tuesday, August 15, expressing strong opposition to Diokno’s recent statement that food and beverage manufacturers would be allowed to directly import sugar as part of the Department of Finance’s plan to increase the tax rate of sugar-sweetened beverages.
Benitez sad he fears that liberalizing sugar importation, without adequate support to 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,” Benitez said.
“Sugar-exporting countries can sell to us their surplus sugar at prices below production cost because of massive subsidies and protectionist policies,” he said.
The Department of Finance has taxed sweetened beverages through Republic Act No. 10963 or the TRAIN Law.
Based on data from the Bureau of Internal Revenue, total tax revenue from sweetened beverages between 2018 and 2022 was P174.5 billion, the resolution said.
It said only P3.92 billion was allocated for programs for the sugar industry for 2018-2023.
This is in spite of the provision in Republic Act No. 10659 or the Sugarcane Industry Development Act that mandates annual allocation of at least P2billion for programs to strengthen the sugar industry.
“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.
“He seems to be supporting liberalization to sweeten the deal with food and beverage manufacturers and counteract additional cost from higher taxes. But what about our sugarcane farmers? What is our deal with them?” Benitez asked.
The proposal of to increase the tax rate of sugar-sweetened beverages and cushion the additional cost by allowing food and beverage manufacturers to directly import sugar may purport to provide a solution but will harm the poor, and sugarcane farmers and farmworkers, the resolution said.
Authors of the resolution aside from, Benitez are representatives Joseph Stephen S. Paduano (Abang Lingkod Partylist), Greg G. Gasataya (Bacolod City), Gerardo P. Valmayor Jr. (Neg. Occ., 1st District), Alfredo D. Marañon III (Neg. Occ., 2nd District), Juliet Marie de Leon Ferrer ((Neg. Occ., 4th District), Emilio Bernardino L. Yulo (Neg. Occ., 5th District), Mercedes K. Alvarez ((Neg. Occ., 6th District), Michael B. Gorriceta (Iloilo, 2nd District), Jocelyn Sy Limkaichong (Neg. Or., 1st District) and Manuel T. Sagarbarria (Neg. Or., 2nd District).*