Philippines’ alcohol import tax breaks trading rules, WTO
The tax levied on alcohol imports in the Philippines breaks global free trade rules, according to a new report from the World Trade Organisation (WTO).
The organisation said its report, released yesterday, confirmed that the excise tax applied on distilled spirits in the Philippines discriminates against imported spirits and was therefore in violation of the principle of non-discrimination enshrined in the General Agreement on Tariffs and Trade (GATT).
The European Commission (EC) said the European Union had raised the issue with the Philippines repeatedly over the past years without success, and that WTO consultations held with the Philippines in Manila in October 2009 had failed to lead to a satisfactory solution.
According to the EC, the taxes applied on imported distilled spirits are ten to 50 times higher than those applied on spirits manufactured in the Philippines.
