MANILA, Philippines — The government has assured to protect the interest of the local distilled spirits and the sugar industries while it seeks to comply with the excise tax ruling of the World Trade Organization (WTO).

Solicitor General Jose Anselmo Cadiz said during that government will conduct extensive consultations with the local distilled spirits and the sugar industries before it complies with the (WTO) ruling on excise tax system on distilled spirits.

Appearing before the House Committee on Ways and Means, Cadiz said the Philippines has an obligation to bring its tax system into compliance with WTO rules because it is a member of good standing but it also has a mandate to protect the interest of the local distilled spirits and sugar industries.

“We must, in complying with the WTO treaty provisions, also take into consideration the view and inputs of the Philippine nationals in this case and that is why we must strike a balance between our obligations as a member of good standing of the WTO and likewise, we must not lose over the interest of Philippine nationals,” Cadiz said.

Rep. Isidro Ungab (3rd District, Davao City), committee chairman, said they will invite the stakeholders of the distilled spirits and sugar industries to get their inputs on how to mitigate the negative effects of the WTO ruling. “All sectors must be considered and heard. If needed, we will conduct marathon hearings to meet the timetable required of us by the WTO,” Ungab said.

Reps. Tomas Apacible (1st District, Batangas) and Jocelyn Limkaichong (1st District, Negros Oriental) who were present during the hearing agreed that the affected sectors must be invited to hear their views on the WTO ruling. Both Apacible and Limkaichong came from provinces producing sugar and molasses which are raw materials in distilled spirits.

Olivia Limpe-aw, president of the Distilled Spirits Association of the Philippines (DSAP) said the Philippine government should comply but at the same time, it should minimize the negative effects of the WTO ruling on the industries.