By Lawrence Agcaoili

Asia Brewery Inc., the beer and beverage unit of airline and tobacco magnate Lucio Tan, urged lawmakers to maintain a status quo on the excise tax rate slapped on cigarettes and liquor in light of the global economic meltdown that has spread to emerging economies, including the Philippines.

Jose Gabriel Olives, chief finance officer of Asia Brewery, yesterday told members of the House of Representatives that House Bill 3787 that aims to unify the tax rate under a single scheme would result to a 41 percent increase in the price of beer produced by Asia Brewery.

?Wholesale prices of our economy-priced beers will have to increase by at least 41 percent in order to accommodate the new taxes?an amount we are certain the market cannot bear. We respectfully, but firmly, oppose any tax increases during these critical economic times and especially, in the form and magnitude that the bill proposes,? Olives said.

Asia Brewery produces and distributes local beers Beer na Beer and Colt 45 and imported Coors, Carlsberg and LoneStar. Its non-alcohol beverages include Cobra energy drink, Pacific Sun juices, Absolute and Summit mineral water and 100 Plus.

Olives said the proposed bill would raise the specific tax imposed on local beers by an average of 123 percent and raise the tax on imported beer brands by just 13 percent.

He said the consequential price increases would result in a collapse of the market for economy-priced beers and take with it a large portion of the community-based distribution and retail businesses that depend on it.

?It will result in an intolerably heavy financial burden on our company as well as place a grossly inequitable share of the tax increase on the poorest segment of the working population,? he said.

He cited forecasts that as much as 200,000 domestic and 500,000 overseas jobs would be lost this year due to the global economic meltdown.