PHILIPPINES: Kraft in sugar tax row

Author: just-drinks.com editorial team | 21 June 2006

A sugar industry body in the Philippines has reportedly urged the country's government to probe the import tariffs paid on premixed powdered soft drinks.

The Philippine Sugar Millers Association (PSMA) has alleged that Kraft Philippines is only paying a duty of 3% - instead of a higher tariff of 38% - on its premixes, most of which originate in Thailand.

PSMA executive director Jose Maria Zabaleta argued that Kraft's drinks warrant the higher tax as they contain over 65% sugar, a Dow Jones report said yesterday (20 June).

"More than the industry, it is the national government that is placed at a gross disadvantage," Zabaleta said. "Where revenue should be flowing in, in terms of tariffs, it being is curtailed."

Sectors: Soft drinks