Are you an alcohol drinker? Or an alcohol manufacturer? Perhaps only few of us are alcohol manufacturers and millions are alcohol drinkers. What brand of spirit do you prefer? Perhaps you like the foreign brands better but you are always buying the local brands. Locally produced alcohols are cheaper because they are made locally. Mode of transport is shorter compared to foreign brands. In addition, our government is imposing a large tax on foreign brands, making them to have prices more than twice as much.
The European Spirit Association and America filed a complaint on World Trade Organization (WTO) stating that Philippine taxes on foreign alcohol brands are discriminatory. WTO then ruled, Philippine taxes imposed on foreign spirits is illegal.
Philippine need to trim down the taxes. What would be the effect. The prices of foreign and local brands would be almost the same. The sales of domestic alcohols will go down drastically – because Filipinos love foreign brands.
The news is good for consumers but very bad for local producers. We should do our best to make our local brands more competitive in terms of quality.