The proposal would raise the excise tax on sweetened beverages to as much as ₱20 per liter, expand coverage to natural fruit juice, and introduce annual inflation adjustments.
Sugary drinks could become more expensive under a proposal to sharply increase the excise tax on sweetened beverages, with the government seeking higher revenues from the measure.
The Department of Finance wants to raise the tax on sugar-sweetened drinks to ₱20 per liter from ₱6, while beverages made with high-fructose corn syrup would face a tax of ₱40 per liter from ₱12.
The proposal would also expand the coverage of the so-called sugar tax to include natural fruit juice and introduce a 5% annual adjustment based on inflation.
The DOF said the current tax rate has remained unchanged since it was introduced in 2019, even as the value of money has declined over time.
The higher levy forms part of a broader tax package designed to help fund planned income tax relief and other tax measures. If implemented, the increase could affect manufacturers, retailers and consumers as businesses adjust to higher production costs.
READ:
BIR offers tax amnesty lifeline to small businesses with old liabilities
radar Business
June 23, 2026
Higher taxes proposed to fund income tax cuts under DOF tax package
Kenneth M. del Rosario
August 4, 2026
Filipinos are taxed every time they earn, spend, and commute
Top Dagohoy
August 1, 2026
