Diabetes, obesity, and the tax on sweetened beverages are discussed in a media forum

The idea to raise the excise tax on sweetened beverages was debated at a media roundtable hosted in Quezon City’s 84-year-old Kamuning Bakery. The symposium, dubbed the “Pandesal Forum,” invited health and economic specialists to analyze the problem, citing as sources the most recent statistics on the prevalence of diabetes and obesity in the Philippines. The forum’s goal was to learn why, despite efforts to lower consumption of sweetened beverages through the excise tax, diabetes and obesity rates in the nation were rising.

Chona Patalen, Senior Science Research Specialist at the Food and Nutrition Research Institute (FNRI) of the Department of Science and Technology (DOST), was one of the experts invited to the event. The per capita consumption of sweetened beverages has dramatically declined between 2015 and 2019, according to statistics from the FNRI. Urban homes showed the most obvious signs of this reduction. Added pure sugar, non-caloric sweeteners like aspartame, or both were subject to a P6.00 tax per liter under the Sweetened Beverage Tax, which went into effect in 2018. Beverages containing high fructose corn syrup, or HFCS, were subject to a P10.00 per liter levy.

Obesity and Diabetes Rates Continue to Rise

In addition, consumption of sweetened beverages has decreased across all age groups in the Philippines, with adolescents and adults showing the sharpest decline. In contrast, Ms. Patalen shared obesity rates among Filipinos have only increased from 2015 to 2018, and even up to 2021. Among those aged 20 and above in the country, 38.6% are overweight and obese. This data translates to 17.8 million Filipinos who are overweight, and 5.6 million who are obese.

The data for Diabetes rates in the Philippines shows the same story. From 2013 to 2019, the number of Filipinos with borderline diabetes has more than doubled, translating to about 17.6 million people. In 2018 when the Sweetened Beverage tax was proposed, the reasons cited for the tax included helping curb obesity and diabetes rates. As the data shows, the number of Filipinos with obesity and diabetes continues to rise, despite the imposition of the excise tax on sweetened beverages. The FNRI is currently conducting the 2023 National Nutrition Survey, which is held every 5 years, which will reflect more updated obesity and diabetes rates, among other health measures.  

An Increase in Excise Tax will Impact Middle- and Lower-Income Classes

Another member of the media forum panel was Dr. John Paulo Rivera, Executive Director of the Asian Institute of Management (AIM) Andrew Tan Tourism Center. Dr. Rivera is also the Chief Economist of Oikonomia Advisory & Research, Inc. In his discussion he noted that it is important to discuss the proposal to increase excise taxes on sweetened beverages because of the impact it may have on inflation, particularly on food. “As of the moment, inflation rates continue to be high, but we see this declining by the end of 2023 up to 2024,” explains Dr. Rivera. “However, if the excise tax on sweetened beverages is pursued, it will have an impact on consumption among middle and lower classes of consumers. This is because of the role that sweetened beverages play in their daily lives. If additional taxes are imposed on sweetened beverages, the prices of these will increase and will make purchasing them harder for consumers to purchase. While we understand that the goal of the excise tax is to limit consumption of sweetened beverages, we should also ask the question if these consumers have alternatives to these sweetened beverages.”

Dr. Rivera goes on to explain that while upper income classes may find alternatives easily, those in the lower brackets may not be able to do so, and as such the excise tax will impact their daily lives. If a tax is imposed, prices will similarly increase and consumers will bear the brunt of the impact. He adds that perhaps the government can find other ways to increase revenues other than an excise tax. In addition, he proposes that if the government would like to limit consumption of sweetened beverages, projects to help improve physical activity like public open spaces to counter diseases can be given focus.

Exercise is Medicine: Physical Activity and a Balanced Diet against Obesity and Diabetes

“We promote exercise because it serves as a hub to change lifestyles,” shares 3^rd panel member Prof. Hercules Callanta, National Coordinator for “Exercise is Medicine” of the Philippine Association for the Study of Overweight and Obesity (PASOO). Prof Callanta is also a faculty member of the College of Human Kinetics of the University of Philippines Diliman. He relates that when people start doing exercise, they start to notice other aspects of their health, like the need to diet and even to sleep better. While it is common knowledge that having a balanced diet and being physically active are the keys to avoiding illnesses, Filipinos do not always practice both.

He clarifies however that while workouts are great for keeping fit, everyone should just start moving every day to be healthy. “We should all just start moving, start looking at our plates, adapting the “mind over plate,” he adds. He also supports the idea of walking more or even biking, taking the stairs, and avoiding using transportation if possible.

Professor Callanta says that more low-cost nutritious food is necessary to combat obesity and diabetes. In particular for the poorer segments of the general population, we want to see healthy food become more accessible, he says. He continues by saying that the government should prioritize encouraging more walkable areas in communities in order to increase the percentage of Filipinos who engage in physical exercise.

The group came to the conclusion that appropriate diet and exercise are more important than taxation in order to lower obesity and diabetes rates, as evidenced by the data.