UK opens parallel negotiations with PHL on alcohol tax

While the European Union's (EU) case filed before the World Trade Organization (WTO) against the Philippine government remains pending, Britain opened parallel bilateral negotiations with the Southeast Asian nation to discuss the possibility of taking out the higher excise taxes on scotch and other imported alcoholic beverages. The government imposes P11.65 in excise tax on local wines and spirits, and from P126 to P252 and up to P504 for imported liquor with net retail prices above P675. "We both agreed that we need to make more progress bilaterally, we want to settle the issue as quick as possible," said Asia Pacific Directorate of the United Kingdom’s Foreign Office director Peter Wilson. The British official met with Philippine Foreign Affairs Undersecretary for policy Erlinda Basilio to discuss investments in the Philippines, noting that some British companies are interested in public private partnership (PPP) projects in air, rail, oil and infrastructure, Wilson said. The British official added that as the case develops in the WTO, the two governments have agreed to hold “extensive bilateral consultations" on the possibility of lifting the high excise taxes imposed on imported liquor, particular those that come from the UK and Spain. The EU and the United States filed separate suits in 2009 against the Philippines for its “discriminatory" act of imposing higher taxes on imported liquor, saying it violates international trade rules. — BC/VS, GMA News