A recent proposal to raise tariffs on artificial sweeteners from overseas could boost tax income for the Philippines’ government, but at the same time could lead to substitution of sweetener with sugar, considered even more ‘unhealthy’ and detrimental to its 100 million population.
The proposal was however supported by domestic (cane) sugar producers who faced significant drop in domestic demand that threatens the viability of their business. The influx of alternative sweeteners first emerged as a primary concern in 2024 when the Department of Agriculture identified rising volumes as a direct threat to local cane sugar farmers.
Food and beverage manufacturers who face the increase in tariffs might substitute sweetener with sugar which can be sourced locally and this indirectly could also reduce state revenue collections.
The Philippines’ government is considering raising the current 5% duty on sugar substitutes to curb surging imports and protect domestic producers. Food and beverage manufacturers may not be able to switch overnight to domestic sugar and opt instead to keep importing and absorb the higher costs. This indirectly will lead to higher state revenue from tax, but in the long run, some companies might source for domestic sugar, supporting domestic industry but however do not address rising concerns over sugar consumption as the main cause of diabetes and other cardiovascular diseases in the country.
