Sin Tax Bill (For the Government) Essay

Harmonizing to James Sadowsky. writer of The Economicss of Sin Taxes. revenue enhancements imposed on merchandises seen as frailties such as alcoholic spiritss and baccies are called sin revenue enhancement. Aside from the trade goods being objects of disapproval. even their consumers accept such revenue enhancements because they seem to hit two birds in one rock. First. they raise grosss and 2nd. they made frailties expensive. House Bill 5727 or besides known as the Sin Tax Bill aims to reform the imposed revenue enhancement on the wickedness merchandises ( Official Gazette. 2002 ) . We support this measure for three grounds. First. the authorities can roll up more grosss. Second. it promotes wellness by detering the ingestion of the frailties. And in conclusion. the hapless sector benefits from it. Sin revenue enhancement is a signifier of an excise revenue enhancement. It is a revenue enhancement levied on some trade goods but non all trade goods unlike gross revenues revenue enhancement.

This is how the authorities generates more grosss ( Sadowsky ) . However. the resistance claims that this measure will backlash on its ends. Since the monetary value of the monetary value of the trade goods will lift. the demand will diminish. Therefore. there will be no grosss to bring forth which contrast one of the ends of the measure since industries such as baccy will decease. However. the merchandises under wickedness revenue enhancement are frailties. Some people are already addicted to them. Even if the monetary value of these merchandises will lift. people will still purchase though some monetary value witting such as the hapless sector and pupils will cut their ingestion ( Fonbuena qtd. Monsod. 2012 ) . Plus. even the demand for the wickedness merchandises will diminish ; the increased revenue enhancement will do up for the loss demand. Thus. the industries will non decease. The resistance besides said that the rate of smuggling will decline.

However. harmonizing to economic expert and former Economic Planning Secretary Solita Monsod. there is no connexion between the rise of the levied revenue enhancement and smuggling. States such as Japan and Singapore who levied revenue enhancement the highest on wickedness merchandises even have the lowest rate of smuggling. Furthermore. aside from being a gross measure. Filipino College of Physicians. New Vois Association of the Philippines ( NVAP ) . and other wellness advocators claim that the measure is significantly a wellness measure. Harmonizing to Emerson Rojas. New Vois President. should the wickedness revenue enhancement measure be passed. more big tobacco users would be encouraged to discontinue smoke. and besides deter the start of immature tobacco users. Many people can be prevented from holding diseases gained from these frailties.

Furthermore. a large part of the gross will travel to public wellness while the smaller will travel to affected baccy workers ( Reyes qtd. Drilon. 2012 ) . Harmonizing to Health Undersecretary Ted Herbosa. money collected from the industry will be used to inscribe 1000000s of hapless households into socialized health care and for the betterment of the whole health care service bringing. Thus aside from bettering public wellness. the hapless sector will profit more from the measure. However. the resistance claimed that there is inequality in the measure. The hapless are the 1s to burthen the raised revenue enhancement. But so harmonizing to Solita Monsod. the hapless are the 1s who are supposed to decrease their disbursal on these frailties since they are the 1s who can hardly afford to pay medical demands if they get diseases from these frailties.


Belo. Walden. The Sin revenue enhancement Promoting the Nation’s Health. Inquirer. May 12. 2012. Web. Fonbuena. Carmela. 5 False Economic Claims on Sin Tax Harmonizing to Solita Monsod. Rappler. October 18. 2012. Web. Investopedia. Sin Tax. Web.

Official Gazette. Sin Taxes. September 19. 2012. Web.

Reyes. Karl John. Sin Tax Passage to Affect Ph Trade. Finance and Social Services – Drilon. Interaksyon. September 28. 2012. Web. Tan. Kimberly. Liqour. Tobacco Companies reminded of Sin Products Social Impact. Gma News. August 23. 2012. Web The Wages of the wickedness Taxes. May 15. 2012. Web.

Sin Tax Bill: Both Revenue And Health Measure. Manila Bulletin. October 2012. Web.


Sin Tax

A state-sponsored revenue enhancement that is added to merchandises or services that are seen as frailties. such as intoxicant. baccy and gaming. These type of revenue enhancements are levied by authoritiess to deter persons from partaking in such activities without doing the usage of the merchandises illegal. These revenue enhancements besides provide a beginning of authorities gross.


Sin revenue enhancements are typically added to liquor. coffin nails and other non-luxury points. State authoritiess favor wickedness revenue enhancements because they generate an tremendous sum of gross and are normally easy accepted by the general populace because they are indirect revenue enhancements that merely affect those who use the merchandises. When single provinces run shortages. the wickedness revenue enhancement is typically one of the first revenue enhancements recommended by lawgivers to assist make full the budget spread. Beginning: hypertext transfer protocol: //www. investopedia. com/terms/s/sin_tax. asp # ixzz2HTDslR4A Why are we back uping it?

1. To advance wellness by detering frailty.
2. To roll up more gross for health care.


Harmonizing to the Department of Health ( DOH ) . the Philippines has an estimated 17. 3 million baccy consumers. the most figure of tobacco users in Southeast Asia. Filipinos on mean consume 1. 073 coffin nail sticks yearly. while the tobacco users in the part consume less than a 1000 sticks annually. This high ingestion rate is seen as a consequence. among others. of the really low coffin nail monetary values in our state. Smoking is responsible for 71 per centum of lung malignant neoplastic disease deceases in the universe. Consequently. lung malignant neoplastic disease is the taking signifier of malignant neoplastic disease in the Philippines.

DOH statistics reveal that 10 Filipinos die every hr because of smoke. Harmonizing to the DOH. a 10 per centum addition in baccy revenue enhancements will cut down the figure of tobacco users by two million by 2016. A important diminution in the figure of tobacco users will likewise cut down the figure of smoking-related deceases. Meanwhile. imbibing intoxicant. though effects are comparatively less terrible health-wise than smoke. has posed a figure of costs on the person and society.


The wickedness revenue enhancement proposes the undermentioned reforms:

* Maintain the specific signifier of excise revenue enhancement ( e. g. . per piece. per battalion. per cogent evidence litre ) to deter ingestion. hold more grosss that are predictable and easier to administrate. and devoid of inducements for makers and importers with under-invoice merchandises ; * A displacement from a multi-tiered revenue enhancement construction to a individual revenue enhancement construction: ( 1 ) For coffin nails. a two-rate construction of P14 and P30 per battalion for the 1st two old ages. and a unvarying rate of P30 per battalion of coffin nails on the 3rd twelvemonth. ( 2 ) For fermented spirits. immediate execution of incorporate rate of P25/liter. ( 3 ) For distilled liquors. a biennial passage period to a incorporate rate of P150 per cogent evidence litre on the 3rd twelvemonth. * Adopt an automatic one-year accommodation of revenue enhancement rates utilizing relevant NSO-established baccy and intoxicant indexes after the 3rd twelvemonth. * A displacement from a raw-material standard to an alcohol-content standard in taxing distilled liquors. * Grosss from wickedness revenue enhancements are to augment the financess of the Aquino administration’s cosmopolitan wellness attention plan. * The continued sharing with baccy husbandmans of the incremental grosss.

Sin Tax Bill: Both Revenue And Health Measure
Manila Bulletin – Wed. Oct 3. 2012

The Philippine College of Physicians. New Vois Association of the Philippines ( NVAP ) . and other wellness advocators on Tuesday urged legislators to see Senate Bill 3249. otherwise known as the Sin Tax Bill. non merely as a gross measure. but more significantly as a wellness measure. . “It’s clip to take action and go through the true wickedness revenue enhancement measure. and non a nominal wickedness revenue enhancement measure in favour of our baccy makers ” said former Health Secretary Esperanza Cabral. She is inquiring lawgivers to go through the measure in order to take down baccy ingestion in the state. New Vois President Emerson Rojas shared the harmful effects of baccy. Rojas was a heavy tobacco user who finally suffered from Stage 4 laryngal malignant neoplastic disease.

He is now unable to speak. salvage for a device he is now utilizing which is an electrolarynx. “The Philippines has the cheapest monetary values of coffin nails in the Western Pacific Region. ” he lamented. Should the wickedness revenue enhancement measure be passed. more big tobacco users would be encouraged to discontinue smoke. and besides deter the start of immature tobacco users. “Let us be on guard against the irrigating down of SB3249. ” urged Rojas. On the other manus. Department of Health Consultant on Non-Communicative Diseases Dr. Tony Leachon and Framework Convention on Tobacco Control of the Philippines representative Dr. Maricar Limpin are forcing for the transition of the wickedness revenue enhancement measure so that the authorities would hold more money to construct better infirmaries and supply premium wellness attention for the hapless. “With the wickedness revenue enhancement. there would be better gross for wellness. ” noted Leachon. Do: Sin Tax is Pro-Poor

This idea is backed up by the DOH. which believes that the wickedness revenue enhancement is non merely anti-cancer. but pro-poor as good. “As the baccy industry targets the hapless in marketing their merchandises. it will besides be the hapless who will profit from the wickedness revenue enhancement as money collected from the industry will be used to inscribe 1000000s of hapless households into socialized health care and for the betterment of the whole health care service bringing. ” said Health Undersecretary Ted Herbosa. Harmonizing to the 2012 study of the Philippine Institute for Development Studies. the prevalence of smoke in the state is higher among the poorest of the hapless with 40 per centum belonging to the lowest quintile while 36 percent come from the 2nd lowest quintile. The figures are the opposite among the rich. where 25 per centum of tobacco users are considered flush.

“This means that of the 17. 3 million grownup tobacco users in the state. 76 per centum of them are hapless. This besides reinforces old surveies that the hapless spend more on coffin nails than on instruction and wellness. ” said Herbosa. Mentioning consequences of the 2009 Family Income and Expenditure Survey. the wellness undersecretary said the country’s poorest spend every bit much as 67 per centum of their income on nutrient and that two-thirds of them do non see a physician or make non seek a wellness installation when they get ill. Herbosa said as the hapless are likely to be less informed of the harmful effects of smoking. they serve as a major market for the baccy industry. They besides suffer most from all diseases and economic load attributed to smoking. Harmonizing to Prof. Tony Dans of the University of the Philippines College of Medicine. half of the one-year 300. 000 deceases from non-communicable diseases in the state are attributed to smoke.

A sum of P188 billion is besides being lost every twelvemonth from the top four slayers of Filipinos ( lung malignant neoplastic disease. chronic clogging pneumonic disease. bosom onslaught. and shot ) which are all smoking-related. “We have to turn the tide and do the baccy industry wage for the wellness and economic loads that smoking brings. By taxing baccy we will be able to inscribe a sum of 10. 9 million hapless households into the Philippine Health Insurance Corp. ( PhilHealth ) and increase ruinous benefits from 10 per centum to 30 per centum of the entire cost. ” said Herbosa. The DOH besides plans to utilize grosss from the wickedness revenue enhancement to engage an extra 10. 000 physicians. 50. 000 nurses and accoucheuses. and 100. 000 community wellness squads to make full in spreads in wellness forces. In add-on. a sum of 2. 243 rural wellness units. 403 territory infirmaries. and 37 DOH-retained infirmaries will besides be enhanced as a consequence of wickedness revenue enhancement grosss while approximately 700. 000 rotavirus and pneumococcal vaccinums will be purchased for hapless babies.

“By taxing the baccy industry we will non merely better our country’s health care service bringing but we will besides forestall diseases and premature deceases because of smoke. ” Herbosa explained. The DOH estimates that around 170. 000 deceases would be prevented during the first twelvemonth of execution of the wickedness revenue enhancement. Meanwhile. around two million tobacco users are expected to discontinue from devouring baccy by 2016 as a consequence of a higher baccy levy. “We will be able to salvage the lives of the hapless and forestall our kids from taking up smoking when we increase the revenue enhancement for baccy merchandises. At the same clip we will be able to better our health care service bringing to provide to the poorest of our population. ” Herbosa said. … .

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Here are the top 5 false claims that the industry is purportedly spreading: 1. Tax addition will escalate smuggling

Showing statistics in assorted Asiatic states. Monsod showed that there’s no relation between addition in excise revenue enhancement on coffin nails and illicit trade. Countries where coffin nails are most expensive — Japan. New Zealand. Singapore. and Australia — have the lowest incidence of illicit smuggling. “There’s no relationship. ” said Monsod.

2. Sin revenue enhancement is unjust

Critics of the Sin Tax step argue that it’s the hapless that will bear the most proportion of the revenue enhancement. Implenting a unitary wickedness revenue enhancement. based on the original version of the legislative proposal. means the same revenue enhancement will be imposed inexpensive and high-end coffin nail trade names. In the Philippines. the biggest proportion of tobacco users besides come from the hapless. Monsod said it’s non an issue. “We are non taxing a good. We are taxing a bad. The proportion of tobacco users is higher among the hapless. Who buys the most? The hapless. And they are the 1s enduring [ health-wise ] . Do non utilize job of unfairness because exactly we want to halt the hapless from smoking. They’re disbursement so much purchasing coffin nails. They can non afford the cost of medicine. ” said Monsod. 3. Farmers. retail merchants to lose support

Monsod questioned the statistics of the Philippine Tobacco Institute ( PTI ) a sum of 840. 146 people are employed in baccy agriculture. With 32. 325 hectares of farming area. that would intend there are 26 baccy husbandmans and assistants per hectare. “Does that sound right to you? And yet. this was accepted without demur by our legislators. Nonsense. There are 52. 000 husbandmans based on National Tobacco Administration informations. ” said Monsod. If the one-year income per hectare is P80. 000. it means that the one-year income of a baccy husbandman is P3. 269. Monsod information. “I am merely utilizing their informations to demo that their Numberss are ridiculous…

How can anybody survive with P3. 000 a twelvemonth. ” Monsod added. Another statement against the Sin Tax step claims retail merchants will endure from loss of gross revenues from coffin nails. Monsod said retail merchants will probably maintain their net incomes from coffin nail gross revenues because the demand for the merchandise is elastic. And even if they lose gross revenues from coffin nails. Monsod said it shouldn’t be a job. “If people stop purchasing coffin nails. you think they’re non traveling to purchase anything else? Cigarettes loss will be milk’s addition or rice’s addition. ” she said. 4. Tobacco industry will decease and gov’t will lose money

All surveies show the contrary. Monsod said. Price addition. she said. will non diminish gross revenues because demand for coffin nails is elastic. Price addition will non discourage tobacco users. said Monsod. because tobacco users are already “addicted. ” They will go on to purchase coffin nails. she said. “If you have diabetes and insulin increased by 300 % . you are still traveling to purchase insulin. ” she explained. 5. Negative net economic benefits

Based on Monsod’s presentation. the one-year gross gross from coffin nail gross revenues is P103 billion but its cost to wellness is P188 billion. Monsod said that is a net cost of P85 billion. ‘Even if the grosss were at that place. you will still state ‘Remove Tobacco. ’ she added. It’s of import that Congress passes a unitary wickedness revenue enhancement. Monsod added. “A unitary revenue enhancement is perfectly imperative. If it is non unitary. what you are basically making is. you are throwing the hapless to the Canis familiariss. Let them decease. You are leting them to kill themselves cheaper. ” Monsod said. Most. if non all. states like the U. S. and Great Britain have adopted a unitary revenue enhancement. she added. The House of Representatives in June passed on 3rd and concluding reading a two-tier excise revenue enhancement construction for baccy merchandises and 3-tier for intoxicant. The diluted step reduces projected grosss from P60 billion a twelvemonth to P30 billion a twelvemonth.


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