Last january, 2013 the 1st round of the Sin Tax. Now this January 2014 the 2nd round of sin tax is due to be implemented.
What is the purpose of the Sin TAX Bill?
House Bill 5727, or the Sin Tax Bill, aims to restructure the existing taxes imposed on alcohol and tobacco goods. Duties on these products are a potential revenue source that will help fund the Universal Health Care Program of the administration.
source: http://www.gov.ph/sin-tax/
The law is intended to increase taxes on Tobacco Products and alcoholic beverages in the Philippines.
Here is the new Taxes for both cigarettes and alcoholic beverages for 2014.
Cigarettes that are priced more than P11.50 per pack will be taxed P27. An increase of P2 from last year’s P25.
For fermented liquor, those that are sold at less than P50.60 per liter will be taxed P17, an increase of P2 from last year’s P15.
Liquor products priced more than P50.60 per liter will be taxed P21, an increase of P1 from 2013′s P20.
For distilled spirits, however, the tax remains at P20 plus 15 percent of the retail price per proof. By 2015, it will increase to P20 plus 20 percent of retail price.
The tax on tobacco products and fermented liquor on both upper and lower price ranges shall continue to rise at their respective rates until 2017 when tobacco products are taxed P30 and fermented liquor P23.50
Source: http://business.inquirer.net/158465/sin-tax-law-ups-prices-of-tobacco-booze-anew
According to the articles that I have read – portions of the revenues for the increased taxes would go to a couple of groups.
The Department of Health
and 15 percent of the incremental revenue collected will be for projects that will benefit tobacco farmers and workers nationwide.
One of the major goals of increasing the taxes was to prevent people from buying these products that prohibitive to the health of people, but did that happen? Most smokers I think, just basically shifted to lower priced brands in the market.
What does that mean? Smokers like me, just find a new brand that fits their taste and shift to the lower priced brand. Certain brands of cigarettes has gained traction in the following of people since the start of 2013. New brands of cigarettes have also been seen in convenience stores like L&M.
Which brands will make it this year?
The Tax bill was sponsored by Senator Franklin Drilon.
