Sin tax

Did you know that there are more people who died being a second hand-smoker than the smoker?
A bill that seeks to impose higher taxes on tobacco and alcohol products.
The collected revenue is meant to raise funds for the governments universal health program.
15 percent of the revenue is said to be allocated for affected farmers and workers while the 80
percent will go to health programs nationwide.
Advertisement
This is being seen as a major deterrent to smoking, especially among teen smokers.
Farmers' attitude towards tobacco cultivation wont change because there is still a big demand
for export.
Crimes caused by drunk teenagers and elderliness will probably decrease.
People dying from lung cancer and liver cancer will be lessened and the Philippines life
expectancy rate will go down.
Secondhand smoke will less be transmitted.
Air population and wastes coming from sin products will be controlled.
http://lloydoppus.blogspot.com/
The Sin Tax law has finally been approved and prices for cigarettes, alcohol and other "sin" products
have increased. With this, people who have vices are now having problems on how to sustain their
smoking and drinking needs. The House of Representatives in June passes on third and final reading an
excise tax structure for tobacco and alcohol products.

I have no vices but let us delve on the perspective of those who have smoking and drinking problems.
Yes, considering of what the governments aim is, especially in trying to avoid the VERY harmful effects
of smoking and drinking, of course I would be very much happier for this new law, but as what we've
always discussed in our economics class economic policies often have effects that their architects did
not intend, question is, What are the possible effects of this law? Is it good or bad? Heres one possible
effect of this so-called sin law, considering that there are a lot of people who are already addicted in
smoking and drinking and consider them as basic needs for they are already accustomed about it. Since,
there is higher proportion of smokers in the poor, they will most certainly be affected by the tax
imposition, but, if the time comes when they couldn't afford it anymore to buy these products, would it
really be just as simple as accepting this fate, moving on with their life, changing for the better and
stopping these vices? Definitely not! Heres what will truly happen, because of lack of money, they will

have no choice (especially the poor) to commit crimes- Robbery, extortion, hold upping that will result
to higher crime rates. This effect comes from people in extreme poverty who can't help but result to
these practices.

Continuing on with the other side of the equation, where will the
revenue from this tax go? The
bicameral conference committee has agreed to cover all local hospitals as beneficiaries of the revenues
from the sin tax reform measure. A tax on tobacco and liquor raises tax income and discourages bad
habits. People should be discouraged from using things like tobacco and alcohol. "Sin Taxes" on these
items perform two good goals. They discourage people from practicing these vices and, if the revenue is
used for medical costs, it can help pay for the harm caused smoking and drinking. People who smoke
know what they are doing to their bodies and that their bodies will suffer in the long run. They are
addictions but they can be overcome with help and determination, the very reason why this tax is
imposed.

Personally, I am for this sin tax law, considering that revenues derived from these taxes will go to local
hospitals and the good and well aims of the legislators for the welfare of the Filipino people, but upon
learning the law of supply and demand and effects of elasticity in the market from economics, I cant
help but be skeptical about it. It would really be desirable for these vices to stop, and without hurting a
sector by not making them lose jobs and no more sickness derived from these harmful habits, is there
any other way? Since the law has only just been implemented and there are still no clear effects, we can
only keep our fingers crossed and hope for the best.
THE huge revenues earned by the government from sin products last year is a good sign that the
implementation of the Sin Tax Reform Law has been effective, but apart from collection the government
must now make sure that the revenues will be used based on what the law has prescribed.
Senator Ferdinand Marcos insisted that tax increments made possible by the reformed sin tax law,
should trickle down to the intended beneficiaries including the tobacco farmers who were identified as
among the direct beneficiaries of the revenues and increments.

Its very clear in the law that tobacco farmers should receive a certain percentage from the revenues
out of the excise tax collection from tobacco products. If the law is very clear on that, the government
should make sure that the farmers will get their entitlement, Marcos said.
The Bureau of Internal Revenue (BIR) earlier announced that excise tax collection from tobacco and
alcohol products from January to November last year reached P91.6 billion exceeding the 2013 target of
P85.5 billion.
Marcos noted that under Republic Act 10351 or the Sin Tax Reform Act, the government will allot
certain percentage of the incremental revenue collected for the promotion of alternative livelihood for
tobacco farmers and workers.
Currently, there are about 53,892 farmers who, together with their families, source their primary
livelihood from the tobacco industry.
Section 8 of RA 10351 provides that: Fifteen percent (15%) of the incremental revenue collected from
the excise tax on tobacco products under R.A. NO. 8240 shall be collected and divided among the
provinces producing burley and native tobacco in accordance with the volume of tobacco leaf
production.
The fund will be exclusively used to promote alternatives for tobacco farmers and workers like programs
that will support farmers who shift to production of other agricultural products or commercial crops.
The allocation will also be used for to assist displaced tobacco farmers, infrastructure projects like farm
to market roads, and agro-industrial projects that will enable them to be involved in the management
and subsequent ownership of projects such as post-harvest and secondary processing like cigarette
manufacturing and by-product utilization.
But Senator Pia Cayetano, one of the proponents of the Sin tax reform law, disclosed that until now the
government has not crafted the implementing rules and regulation (IRR) governing the earmarking of
funds from incremental revenues.
Cayetano, said that the delay on the crafting of the IRR, could also delay the release of needed funds
intended for public health services, universal health care, alternative livelihoods to tobacco farmers and
workers.
These are clear delays and violations of the law. The Department of Budget and Management, Bureau
of Internal Revenue, and the Department of Finance owe the people and the Congress an explanation
where the billions in sin tax collections are going, Cayetano earlier said.
Repeal
Meanwhile, employees of Philip Morris Fortune Tobacco Corporation (PMFTC) has called on
legislators to immediately file a bill that will repeal RA 10351 and correct the institutional injustice
inflicted by the Aquino government against their ranks.

Rodelito Atienza, president of the PPMFTC labor union at the same time said that proponents of the sin
tax law clearly deceived them when they said that the enactment of the tax measure will not lead to
joblessness.
The legislators lied through their teeth during the deliberations of the tax measure. Workers families
are now saddled with budgetary constrains because the sin tax law deprived us of a decent and
productive employment for the next five months because of their lies, Atienza said.
Atienza called the tax measure fundamentally unjust law for its pass-on character and has already
placed their jobs in grave peril as their company recently implemented a five month deduction of work
days due to its declining yet still significant market share.
The employees also challenged lawmakers who supported the passage of the sin tax law to prove that
job losses are avoidable under a burdensome Sin tax law.
All we did was toil as hard as possible and yet we are helplessly forced into predicament not of our
choice. The government is satisfied with its taxes and the corporations have their profits, but why are
the ones to suffer, he added. JEFFERSON ANTIPORDA