The newly approved TRAIN of the government raises up the tax on sugar-sweetened drinks including soda. Following the removal of the drink-all-you can feature of SnR, the exclusive franchise holder of McDonald’s in the Philippines says that it is thinking of ways on how they can balance their prices in accordance to the newly approved bill.
Diners should expect to pay more for their sodas. Golden Arches Development Corporation (GADC), the holder of the exclusive franchise of McDonald’s in the Philippines, may raise the price of soda if they can’t balance it out.Kenneth Yang, the CEO and president of GADC told reporters in the sideline of one of their launch in Taguig City last Friday, January 12.
“We may have to raise beverage prices. What we are trying to do is balance everything out. We continue to provide a lot of value for our customers.”
As of November 2017, there are 547 stores of McDonald’s in the Philippines.
Yang feels that they will feel the impact of the TRAIN bill. Both GADC and McDonald’s customers, but he s optimistic that they will eventually be ok.
“We’ll be affected by the sugar beverage tax. There might be some resistance [from customers], but we’ll eventually be okay.”
Under the TRAIN law, drinks that have high fructose corn syrup like sodas are now taxed by P12 per liter. For the drinks that are using artificial sweeteners, the tax is P6 per liter.
The Philippines is the latest among the other countries that introduced sugary drinks tax as an effort to increase revenues and also to fight obesity.
The other countries that already implemented the tax are Ireland, Hungary, and France.
Denmark already introduced the sugary drink tax to their country in the 1930’s but then repealed it in 2014 so that they can have more jobs and they can help their economy.
In the Philippines, the TRAIN law is just the first of 5 tax reform packages that are planned to raise state revenues.