PHL to appeal WTO ruling on liquor tax

The Philippines will appeal before the World Trade Organization (WTO) a recent ruling by the body saying that the unreasonably high taxes slapped on foreign brands of alcoholic beverages is discriminatory. Finance Secretary Cesar Purisima and Trade and Industry head Gregory Domingo said the clamor from the industry sector prompted government's appeal. “We will respect what the industry wants," Domingo said. One of the industry groups who called on government to act on the matter is the Distilled Spirits Association of the Philippines (DSAP), composed of Destileria Limtuaco, San Miguel Corp., Ginebra San Miguel Inc., Tanduay Distillers Inc. and Emperador Distillers. In a statement, the group said the Philippine government does not discriminate against foreign brands but that these products simply have different markets "and are more expensive" given that these are imported. Purisima, however, stressed that as a member of the WTO, the Philippines is ready to abide by the trade organization's rules. “We will make an appeal but as a member of the WTO, we will have to respect the ruling," Purisima told reporters on Wednesday. Domingo, however, did not say when the Philippines will file the appeal. The WTO ruled last week that taxes levied by the country on spirits — Jack Daniel's, Jim Beam and Brandy de Jerez — from the European Union and the United States are illegal under global trade rules. The country's current tax system favors domestic producers in catering to the $3 billion local alcoholic beverage market, the WTO added. —JMT, GMA News