THE House of Representatives will immediately review tackle the tax levied on alcohol which has been ruled by the World Trade Organization (WTO) as illegal upon the resumption of Congress in January.
This was reported by Rep. Isidro “Sid” T. Ungab (Davao City, 3rd District), newly elected chairman of the House committee on ways and means.
Ungab said that the WTO upheld an earlier ruling on the complaint filed several years ago by the European Union and United States that the Philippines had violated global trade rules by taxing foreign alcohol beverages at rates 10 to 40 times higher than brands made in the Philippines from home-grown materials such as cane and palm sugar.
A WTO dispute settlement panel found the Philippines guilty in August. A WTO appellate body upheld the decision last Wednesday.
Ungab said the Philippines has 30 days to present its plan to comply with the ruling.
He said Congress has to amend certain tax laws in the country in order to conform with the ruling.
“We will act with dispatch and hope to resolve the issues within the first half of next year,” Ungab said.
As the new chairman, Ungab will consult the House of Representatives leadership and the majority coalition on how to deal with the WTO (World Trade Organization) decision.
“I will also discuss the matter with the executive department,” he said, adding “we have at least 12 months to comply with the decision of WTO on distilled spirits.”
The WTO ruling disappointed members of the Distilled Spirits Association of the Philippines, but DSAP president Olivia Limpe-Aw said local distillers with work with the government on the legislation to implement the ruling.
The United States has urged the Philippines to open its market to U.S. alcohol products like Jack Daniels and Jim Bean by eliminating a discriminatory tax system which has already struck down by the WTO.
The EU and the United States are the world’s top two exporters of distilled spirits.
