Manila: A Philippine lawmaker has filed a bill calling for a 10 per cent tax on carbonated drinks, saying the funds collected could increase government revenues, while helping efforts to fight diabetes and obesity.

“The proposed additional tax for carbonated drinks could add up to P10 billion (Dh844.4 million) annually,” Congresswoman Estrellita Suansing said.

“I have proposed that the generated fund will be allocated for the relief of calamity victims and the rehabilitation of damages incurred during typhoons and earthquakes that often hit the country.”

“The additional fund will also benefit the health department, which participates in the risk reduction and management during calamities and the outbreak of viral and infectious diseases,” said Suansing.

When asked if the economic aim of the proposed bill is cancelled out by its other health-centred aim, Suansing said: “We are not after the banning of the production of carbonated drinks, although additional tax could also mean increased prices for them.”

Producers of carbonated drinks employ about 25.000 workers. An estimated 1.2 million entrepreneurs sell carbonated drinks, industry sources said.

Beverage sales will go down by eight per cent if the measure is approved by the two Houses of Congress, said a source from RC Cola, the country’s largest producer of carbonated drinks.

Private and state schools already discourage stores that sell food products on their premises not to carry carbonated drinks.

“Health authorities have blamed carbonated drinks for the rising number of obese children and cases of lifestyle-acquired diabetes among young adults,” said Dr Sonia Estabillo, a dentist.

In reaction to the proposed bill, Atty. Adel Tamano of the Beverage Industry Association said it is better to pass a bill compelling producers of carbonated drinks to “guide health conscious consumers by legislated imposition of proper product labelling, including true sugar and calorie contents of carbonated drinks.”

“This proposed bill is a win-win alternative bill. Its regulatory effort is both for the public’s education on health care and the producers of carbonated drinks,” explained Tamano.

Sources said President Beningo Aquino has extended his support for the passage of the proposed bill, although he has not called for its urgent approval.

The Philippines is the largest consumer of carbonated drinks among 10 members of the Association of Southeast Asian Nations (ASEAN), food industry sources said.

ASEAN is composed of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.