Businesses continue to lobby hard against sugar tax

The local business industry continues to lobby hard against a bill to increase the tax on sugar-sweetened beverages, powders, and syrups to 4 cents per ounce.

Business officials, representing the wholesaler companies like Marpac, the hotel sector like the Hyatt Regency Saipan and Tan Holdings, and even the local theater, met with Gov. Ralph DLG Torres Monday for a closed-door meeting in the Office of the Governor’s press conference room to air their concerns on House Bill 19-99.

“They are totally opposed to the sugar tax,” Torres told Saipan Tribune, in an interview after the meeting.

Torres, recalling several points raised from the business people, was told small business would “shut down,” and that the .004 tax was already one of the highest in the nation, among other concerns.

“Their concern is that if I was to pass this bill as is, it will hurt the community,” he said.

One hotel official, Torres said, stressed that the tax would “definitely hamper” the tourist industry. That official, Torres said, expressed concern that prices were “already high” and that if they were to impose the tax on tourist, it would further mark up costs and impact tourism.

Torres also said a representative from the local movie theater said the tax would “most likely” cause them to shut down because they make most of their money from beverages.

“Especially for them, when there are small items to sell, there is not much to distribute the increase,” or spread costs to other products, Torres said.

Still, as Torres has been both pressured recently by public health groups and businesses on a decision favorable to their causes, he said he is “for sure, not close” to making a decision on the bill.

One way or another, he said, the government would address the issue of health.

“Whether I sign it or I veto it, there is an issue that needs to be addressed. So I’ve echoed that concern today (Monday) and also with the health [officials] that are for the bill.”

In pushing the bill through the House and Senate, bill proponents have stressed the number of deaths in the CNMI attributed to non-communicable disease, with diabetes as one of the leading causes of deaths.

Among points made, proponents say the sugar beverage industry has had the lay of the land for years, clogging consumer choices and options with the “junk” of sugar products and that the chronic conditions diseases related to high sugar intake has had an impoverishing effect on those in the community already bereft of the services or money for the services to treat their health conditions.

The bill, if enacted into law, would have a sunset provision of five years; meaning lawmakers could review the merits and impact of the measure on the community.