Sintax Reform Law Essay Sample

9 September 2017

Don’t expect crisp bead in smoking with new wickedness revenue enhancement measure — economic expert SIEGFRID O. ALEGADO. GMA NewsDecember 12. 2012 7:52pm
The wickedness revenue enhancement reform step will decidedly raise the monetary values of coffin nails and alcoholic drinks. but there won’t be an immediate and pronounced lessening in the figure of tobacco users kicking the wont merely because a stick of Marlboro Lights – for case – has become more expensive.

But authorities functionaries are confident that the step. expecting President Benigno S. Aquino III’s signature. will finally control coffin nail ingestion.

“The wickedness revenue enhancement jurisprudence will increase revenue enhancements for coffin nails and alcoholic drinks. It will hold the consequence of increasing the monetary value of smoke and imbibing. ” Finance Assistant Secretary Ma. Teresa Habitan noted in a text message to GMA News Online on Wednesday.

How precisely will this step impact on Filipinos who crave for the nicotine haste? Economic theory explains.

“People will non uncover exact alterations in ingestion [ of coffin nails ] until the wickedness revenue enhancement measure has been to the full implemented. ” University of Santo Tomas economic expert Alvin Ang said in a phone interview.

Theoretically. any signifier of monetary value addition stemming from new revenue enhancements or non takes clip to be realized by devouring public. the economic expert noted.

Targeting the hapless

Ang said such revenue enhancements target price-sensitive sectors. peculiarly the hapless and young person. “In clip. those who could non afford coffin nails will take down ingestion or discontinue all-together. ” he said.

Habitan noted the principle behind the Reformed wickedness revenue enhancement step is to control smoke and imbibing in these sections while supplying extra financess for wellness plans.

“These are non basic trade goods – coffin nails and intoxicant are pleasure goods. which have bad wellness effects if consumed overly. ” she said. observing consumers buy wickedness merchandises because these are cheap.

Filipinos spend around 0. 8 per centum of their entire outgo on baccy. statistician Jose Ramon Albert wrote in his article “What is So Iniquitous About the Sin Tax? ” which is posted on the National Statistical Coordination Board’s web site.

What is deserving observing is that the poorest 30 per centum of Filipinos spend more on back uping the wont. with 1. 6 per centum of their entire disbursals traveling to coffin nails. he added.

In an earlier Senate hearing. Health Secretary Enrique Ona has said the Philippines is the top smoke state in South East Asia.

Filipino tobacco users on the mean consume 1. 073 sticks yearly. compared to Indonesia ( 974 ) . Vietnam ( 887 ) . Malaysia ( 646 ) . Thailand ( 634 ) . Laos ( 544 ) . Cambodia ( 447 ) . Singapore ( 406 ) . and Myanmar ( 209 ) . Ona noted.

Finance functionaries had blamed the state of affairs on a complicated four-tier excise revenue enhancement construction with rates based on monetary values of trade names in 1996.

The system allowed consumers to travel for cheaper coffin nails. “Consumers look for cheaper options if they could non afford certain goods. ” Ang said.

The revenue enhancement rates were besides unadjusted for rising prices. doing coffin nails cheaper each twelvemonth. he added.

In its version submitted to Congress. the Aquino disposal batted for the prostration of the four-tier system into two with higher rates for the first two old ages of execution and a unitary P30 revenue enhancement in the 3rd twelvemonth. The authorities besides wanted wickedness revenue enhancements indexed to rising prices in a manner that the excise revenue enhancement is partially influenced by the motion of trade good monetary values.

But Congress a approved version with a two-tiered rate for both baccy merchandises and fermented spirits. and bit by bit increasing to settle at a individual P30 rate by 2017.

“The excise revenue enhancement incidence for baccy merchandises jumps from a measly 29 per centum in 2012 to a respectable 63 per centum by 2017. stopping point to the international criterion recommended. ” Finance Secretary Cesar Purisima said in a statement Tuesday.

The measure ratified by Congress tardily Tuesday besides indexed a 4 per centum one-year addition in revenue enhancement rates during the 6th and succeeding old ages. intending the excise revenue enhancement on coffin nails will lift at a fixed per centum regardless of a faster or slower rising prices.

The Finance Department has said the Executive version of the “sin” revenue enhancement measure will cut down coffin nail ingestion in half – from 5. 45 billion battalions ( prior to the new jurisprudence ) to 2. 8 billion in the first twelvemonth of execution. 2. 6 billion in the 2nd. 2. 51 billion in the 3rd. and 2. 5 billion in the 4th.

Ang said the marks “could still be achieved. but at a ulterior day of the month. ”

While the 4 per centum would non capture exact alterations in monetary values of coffin nails. what the indexation does is “assure that wickedness merchandises will non go more low-cost in the hereafter.

“Regardless of rising prices. it will be certain that revenue enhancement on wickedness merchandises will increase. ” he said. “If the purpose is to take down ingestion. it is a good step. ” Ang added.

Indexing will assist forestall “exposing the hapless and the immature to the harmful effects of smoke and inordinate imbibing. ” said Purisima.

The sanctioned wickedness revenue enhancement measure “remains a good step. It merely has to be implemented good. ” Ang said. —VS. GMA News SOURCE:

hypertext transfer protocol: //www. gmanetwork. com/news/story/286143/economy/finance/don-t-expect-sharp-drop-in-smoking-with-new-sin-tax-bill economic expert

Taxs on intoxicant and coffin nails don’t discourage ingestion and hit the hapless hardest · “Sin taxes” on coffin nails and intoxicant are designed to hike gross. non better public wellness · Minimum intoxicant pricing will worsen poorness and entrench inequality without detering orgy imbibing · Most of the costs of imbibing and smoking autumn on single consumers. non the populace. There is no economic justification for increasing revenue enhancements on tobacco users and drinkers. In a study released today. “The Wages of Sin Taxes” . the Adam Smith Institute condemns the government’s determination to increase revenue enhancements on coffin nails and intoxicant this twelvemonth and to present minimal intoxicant pricing. The study argues that ‘sin taxes’ ( revenue enhancements on trade goods seen as harmful to wellness ) are uneffective in cut downing ingestion and are non necessary for reimbursing lost gross. The revenue enhancements are extremely regressive and coerce the hapless to pay for the government’s mishandling of public fundss. The revenue enhancements don’t work

Cigarette revenue enhancements are now so high that increases drive tobacco users to the black market alternatively of detering ingestion or raising more gross. Sin revenue enhancements are more likely to discourage moderate users than heavy users. whose demand for coffin nails and intoxicant is comparatively inelastic. A heavy tobacco user or an alcoholic is improbable to cut down ingestion because of a monetary value rise. doing sin revenue enhancements an undependable manner of cut downing ingestion or bettering public wellness. The victims of coffin nail and intoxicant responsibility

Sin revenue enhancements hit moderate and heavy users likewise. Research has shown that old rises in coffin nail revenue enhancement have made merely 2. 3 % of tobacco users quit. with the other 97. 7 % merely paying more in revenue enhancement. Tax on coffin nails and intoxicant are regressive and hit the hapless hardest. The mean tobacco user spends ?1660 a twelvemonth on coffin nails – 20 % of the bottom 10 % ’s income. Sin revenue enhancements are the most regressive indirect revenue enhancements. as they tend to aim merchandises that are disproportionately consumed by the hapless. Minimum intoxicant pricing is besides profoundly regressive. merely impacting the cheaper drinks consumed by the hapless. Punishing hapless people for basking a drink or a coffin nail exacerbates poorness and treats the hapless like kids who need to be controlled by the province. The public cost of smoke and imbibing

Taxs on coffin nails and intoxicant have frequently been justified by surveies that claim to gauge the “social cost” of these frailties. These surveies include intangible costs borne by single consumers. such as “emotional distress” . lost old ages of life. and single outgos on coffin nails and intoxicant. These are personal costs. non societal costs. They besides fail to include the economic benefits the intoxicant and coffin nail industry gives to the UK in footings of employment and authorities gross. Most of these surveies should be relegated to the bin of debris statistics. In fact. tobacco users and heavy drinkers do non be the province more. Though tobacco users may be more during their on the job lives. but non-smokers require greater outgo in pensions. nursing attention and public assistance payments. Chronic diseases associated with old age are far more expensive than the deadly diseases associated with smoke and alcohol addiction. Smokers and drinkers are non a load on the province. and the myth of saints subsidizing evildoers should non be used to warrant revenue enhancement rises. The entreaty of ‘sin taxes’

Despite the fact they hurt the hapless and do non alter consumer ingestion. wickedness revenue enhancements have ever been popular with authoritiess as a beginning of gross. Sin revenue enhancements and minimal intoxicant pricing should be recognised for what they truly are – stealing revenue enhancements and paternalism designed to command the hapless. Chris Snowdon. writer of the study and Adam Smith Institute chap. says: “Campaigners for wickedness revenue enhancements and minimal pricing frequently claim that “healthy citizens” are forced to bear the cost of other people’s life styles. In fact. the grounds shows that tobacco users take less from the communal pot than the mean Briton and the money raised from intoxicant responsibility comfortably wages for any load imbibing topographic points on public services.

If the purpose of policy is to do persons pay their manner. the authorities should cut down the beer revenue enhancement and subsidise coffin nails. We are non earnestly proposing the authorities does this. but if politicians insist on increasing revenue enhancements on these merchandises. they should acknowledge that the intent is to raise gross. Basically the authorities is coercing the people who are least likely to populate to extreme old age to pay for the escalating costs of an ageing population. “As we show in the study. amongst EU states there is no relationship between intoxicant monetary values and intoxicant related injury. nor is there an association between coffin nail monetary values and smoking rates. The lone important effects that sin revenue enhancements have are to do the hapless poorer and black marketeers richer. ” Beginning: hypertext transfer protocol: //www. adamsmith. org/news/press-releases/taxes-on-alcohol-and-cigarettes-don % E2 % 80 % 99t-discourage-consumption-and-hit-the-poor

Inch: REVIEW Sin Tax Law
] anuary 10. 2013 By Michelle Lojo of DSLU
Late last twelvemonth. President Benigno Aquino III signed Republic Act No. 10351. otherwise known as the wickedness revenue enhancement reform measure. The jurisprudence increases revenue enhancements on intoxicant and coffin nails. The jurisprudence. on norm. increases the monetary values of coffin nails sold by battalion from P11. 50 to P23. 50 and will go on to increase each go throughing twelvemonth as per rating. Even with the addition in monetary values of coffin nails. Malacanang reports that the monetary values of coffin nails in the state are still low compared to the monetary values among other Asiatic states where monetary values of baccy merchandises can ramp up to P50 per battalion.

The National Youth Commission ( NYC ) . along with other study companies released consequences that predict that the figure of immature tobacco users diminish ingestion one time coffin nail monetary values addition. along with the lessening of coffin nail ingestion per twenty-four hours by tobacco users. The jurisprudence is besides considered a tool that would deter smoke.

The original wickedness revenue enhancement measure. which had been pending since the 1997 Congress. is seen as more of a wellness step. as compared to the signed jurisprudence. which would convey more income to the authorities. Aquino explains that the sign language of the Sin Tax Bill into Law is a agency of giving wellness benefits to Filipinos. regardless of stature. The expected grosss from the increased revenue enhancement will be used to fund wellness benefits for the hapless and assistance in restituting and building new infirmaries. He deemed it an early gift to the Filipino people. stressing that life of each Filipino is sacred.

The Sin Tax Law has been in consequence since January 1. 2013 with many coffin nail sellers already staying by it. But PMFTC. Inc. . a major baccy company in the state. released a statement that they have non increased the monetary values of their merchandises and advise Sellerss of their merchandises to sell at current recommended monetary values. Beginning: hypertext transfer protocol: //thelasallian. com/2013/01/10/in-review-sin-tax-law/

Sin revenue enhancement measure signed into jurisprudence
By Aurea Calica ( The Philippine Star ) | Updated December 21. 2012 – 12:00am MANILA. Philippines – President Aquino signed yesterday the wickedness revenue enhancement reform measure into jurisprudence. paving the manner for higher coffin nail and spirits monetary values in the approaching hebdomads. After subscribing Republic Act No. 10351. Aquino thanked lawgivers who fought to hold it passed amid strong anteroom against the step from what he described as groups “with deep pockets. ” “Many believed it was impossible to go through the wickedness revenue enhancement bill” as those barricading its transition were “strong. noisy. organized. ” the President said. But he said it was finally difficult work and integrity that prevailed and made the twenty-four hours for the wickedness revenue enhancement step. “Today. we sign. eventually. a jurisprudence that serves as an early Christmas gift to 1000000s of Filipinos who will be covered by the cosmopolitan wellness attention plan. who will profit from new public clinics and infirmaries that will be built. and who will be discouraged from smoke and imbibing. ” the President said in his address during the sign language ceremonial at Malacanang.

“We have proven: nil is impossible for Filipinos who are sailing in the same way. whose Black Marias are in the right topographic point. and who are ready to contend for their rules. ” he said. n its first twelvemonth of execution. the step is expected to bring forth for the authorities extra grosss deserving P33. 96 billion. of which P23. 4 billion will come from coffin nails. P6. 06 billion from distilled liquors and P4. 5 billion from fermented spiritss. The wickedness revenue enhancement measure had been pending in Congress since 1997 and the President said many had thought it would already be impossible to hold it passed due to conflicting involvements. The measure will significantly increase the monetary values of coffin nails and spirits in the state. The monetary values of wickedness merchandises in the Philippines are significantly lower than those in other states. Contrary to claims by anteroom groups. Aquino said baccy husbandmans would profit from the step in footings of aid and entree to alternative support. The President thanked Senate President Juan Ponce Enrile for demoing regard for the transition of the step despite his being against it. He besides praised Speaker Feliciano Belmonte Jr. and Sen. Franklin Drilon for their attempts in guaranting the bill’s transition.

Aquino said Finance Secretary Cesar Purisima. Health Secretary Enrique Ona and Bureau of Internal Revenue Commissioner Kim Henares should besides be credited for converting lawgivers to see the step. He called Henares the “lead combatant in the trenches for this enterprise. ” Aquino said that based on the enacted step. “taxes will be unvarying and will open the doors for healthy competition in the industry and avoid monopoly. ”

Eighty per centum of the incremental grosss after subtracting the support for baccy husbandmans under RA 7171 will be allocated for cosmopolitan wellness attention under the National Health Insurance Program. and 20 per centum will be allocated countrywide for medical aid and wellness sweetening installations plan. Under the wickedness revenue enhancement jurisprudence. the proper revenue enhancement categorization of intoxicant and baccy merchandises will be determined every two old ages. taking the price/brand categorization freezing. This is meant to simplify the current multi-tiered construction to forestall downshifting to take down priced trade names. To forestall the excise revenue enhancements from acquiring eroded by rising prices. the excise revenue enhancement rates will be increased by four per centum every twelvemonth effectual 2016 for distilled liquors and 2018 for coffin nails and beer. Officials said the jurisprudence conformed to the World Trade Organization governing on distilled liquors and baccy. Drilon leaves chairmanship

Drilon. interim. has given up his function as moving president of the Senate commission on ways and agencies after assisting guarantee transition of the wickedness revenue enhancement reform step. Sen. Ralph Recto reassumes the chairmanship of the commission. Drilon took over the chairmanship of the commission from Recto last October after the latter decided to give it up in response to allegations that he was supporting makers of coffin nails and intoxicant. Recto decried what he thought was deficiency of support from finance functionaries for his version of the wickedness revenue enhancement measure. He had been pilloried by assorted sectors for forcing for lower revenue enhancement rates for coffin nail and spirits. Apart from the wickedness revenue enhancement measure. Drilon besides sponsored the measure taking the common bearers revenue enhancement on foreign air hoses and Marine vass. “These two of import steps. I believe. is a major work that the commission on ways and agencies undertook for the past two months.

Having said that. we believe it is clip that we relinquish the moving chair as the lone intent of our holding assumed the moving chair is to work foremost on the wickedness revenue enhancement reform step and 2nd. on this long-pending common bearers revenue enhancement. ” Drilon said. Sen. Ferdinand Marcos Jr. . for his portion. insisted that the wickedness revenue enhancement reform step will advance smuggling of baccy in the state. He said the authorities is improbable to recognize its gross mark. Tobacco husbandmans belonging to the Philtobacco Growers Association ( PTGA ) besides expressed letdown over the transition of the step. “We are in mourning because this is the beginning of the death of the baccy industry in the state. ” said PTGA president Saturnino Distor. The group believes the excise revenue enhancement jurisprudence favours imported trade names. ‘Game changer’

For Health Secretary Enrique Ona. the Sin Tax Reform Law is a “game changer” that will drastically change the landscape of the country’s wellness attention system. “The passage of this jurisprudence is a triumph in our run to protect our people. particularly the immature and the hapless. from the sick effects of smoke and inordinate imbibing. ” Ona said in a statement in reaction to President Aquino’s subscribing the step into jurisprudence. Ona added that by increasing the monetary values of coffin nails. “the figure of immature and hapless people smoke and imbibing overly will be reduced significantly. ” This in bend. he said. will ensue in “lower incidence of smoking related non-communicable unwellnesss such as lung malignant neoplastic disease. bosom onslaught. shots and chronic lung disease. every bit good as diseases associated with inordinate imbibing such as liver diseases and injury secondary to imbibe drive. ” Part of the grosss from baccy and intoxicant merchandises will be used to inscribe into Philippine Health Insurance Corp. ( Philhealth ) the poorest 20 per centum of the country’s population and upgrade and modernize infirmaries and other health care installations. among others.

“The Department of Health is thankful for the priceless dedication of Sen. Franklin Drilon. moving chair of the Senate commission on ways and agencies. and Representative Isidro Ungab. chair of the House commission on ways and agencies and measure patron in their several Chamberss. in guaranting that this critical wellness step is passed. ” Ona said. “We besides recognize the support of our wellness title-holders in the Senate and the House of Representatives every bit good as the Department of Finance. Bureau of Internal Revenue and our spouses in the academia. medical societies. patients’ groups and other members of civil society. ” he said. Based on DOF projections. the jurisprudence is estimated to bring forth cumulative incremental gross of P184. 31 billion from 2013 to 2016. of which P146. 7 billion is estimated to be earmarked for wellness. With Sheila Crisostomo. Marvin Sy. Christina Mendez SOURCE: hypertext transfer protocol: //www. philstar. com/headlines/2012/12/21/888415/sin-tax-bill-signed-law Definition of ‘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.

Investopedia explains ‘Sin Tax’
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 # axzz2Hs1W31jW

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