Sin tax gets mixed reactions

WITH the implementation of the sin tax reform law, a 27-year-old web designer said he imagined himself turning water into wine, beer or any other liquor.

“So I could not spend my money anymore,” said Erik Tuban.

But since he has no power to do such a thing, all he could do is rant against the new law.

“It is a stupid law perpetrated by the ruling class that dictates: ‘it’s okay to sin as long as you have the money,’” said Tuban, who has smoked cigarettes since he was 16.

COCKTAIL. RA 10351 or the restructured sin tax law inspires different reactions from different sectors, from beer drinkers to sidewalk vendors. The government says the country has the highest incidence of smoking in the region, with tobacco-related diseases costing government some P177 billion last year, as reported by an online news site. (Sun.Star Photo/Alex Badayos)

When asked if the law can stop people from drinking and smoking, he retorted: “It cannot stop them. They ignored the health risks, how much more the financial aspect? Perhaps, the law can moderate them to some extent only.”

Republic Act 10351, or the restructured sin tax law, was enacted last Jan. 1. Tax on cigarettes will gradually be raised to P30 per pack by 2017, roughly doubling the current price to around P52.

Duty on alcohol will also increase gradually until 2017, increasing the price of a bottle of beer by P23.50, with varying levels for other drinks including wine and liquor. It will be further increased by four percent each year thereafter.

Incidence

The government said the country of 100 million has the highest incidence of smoking in the region, with tobacco-related diseases costing the country P177 billion last year, social news network Rappler reported.

The new taxes aim to raise over P33 billion this year alone, gradually increasing over the coming years.

A large portion of the money will go to the government’s health care program.

The government first asked the lawmakers to increase taxes on “sin” products as early as 1997, but a strong opposition by tobacco manufacturers prevented the change.

Sidewalk vendor Dodong Maunes, 35, said his cigarette sales have not decreased, saying people who like to smoke will always smoke.

“Those who like expensive brands transferred to cheaper ones,” he said in Cebuano.

He said he sold two major brands before at P3 per stick, but their current price is at P5. Maunes said a store sold a pack of the two brands at P54, a P23 increase from the original price of P31.

A cheaper brand was sold by Maunes before at P1.25 per stick, but he increased the price to P2 after the sin tax law took effect. He said he can earn an average of P600 by selling cigarettes everyday.

Slow sales

For sari-sari store owner Mayumi Esplanas, 37, her beer sales have slowed. She sold two popular beer brands at P60 per bottle before, but she increased their price to P70.

Despite the poor sales, Esplanas said she will continue selling liquor for there are still neighbors who like to drink and get drunk.

For Tuban, he said the government should seek “alternatives” in increasing tax collection and ways to discourage people from indulging in vices. When asked if he will quit smoking and drinking, he said he is already hooked.

“It is just like asking ‘why you don’t want to stop eating?’” he said.