Your favorite softdrink and ice cream could soon cost you more

The DOF is proposing to expand sugar tax coverage and raise exisiting rates.

That bottle of softdrink or iced tea you grab with lunch—or that scoop of ice cream or cup of frozen yogurt you reach for dessert—could soon cost more.

The Department of Finance (DOF) is proposing to expand the country’s sugar tax while sharply raising existing rates. The tax on drinks with caloric or noncaloric sweeteners could jump from ₱6 to ₱20 per liter, while beverages containing high-fructose corn syrup could see the tax rise from ₱12 to ₱40 per liter.

The proposal would also create a new taxable category covering dairy- and plant-based ice cream, ice milk, water-based frozen desserts such as sorbetes and ice lollies, and flavored and unflavored frozen yogurt products.

The DOF also wants to remove the current exemption for 100% natural fruit and vegetable juices with no added sugar under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Plain milk and milk drinks without added sugar, medically indicated beverages, unsweetened tea, and coffee would remain excluded under the proposal.

The DOF said the proposal is meant to support public health goals while preventing inflation from eroding the value of the excise tax. It also wants the tax rates to increase by 5% every year.

The agency said it expects the expanded taxes to generate an average of ₱74.7 billion annually from 2027 to 2030, while reducing sweetened beverage consumption by 27.2%.

The proposal forms part of the DOF’s ProGRESS bill, which seeks additional government revenues alongside planned tax relief measures, including the administration’s proposal to raise the personal income tax exemption ceiling to ₱350,000 from ₱250,000.

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