Friday, January 11, 2013

RA No. 10351 - Sin Tax Reform Law of 2012


Hello New Year, Hello Sin Tax Reforms!


  The Sin Tax Reform Law, effective on the first day of 2013 has been a very controversial issue the previous year. It was controversial because there were Filipino citizens who opposed the said reform. It was due to the increase in the taxes that will be imposed on cigarettes and alcoholic beverages. Even though the people objected to the said reform of the law, their oppositions did not affect the lawmakers of our country because they still implemented the reforms of the Sin Tax Bill.

    The Sin Tax Reform Law aims to increase the revenues of the government by increasing the taxes imposed on goods that are regarded as "sin products" such as alcoholic beverages and cigarettes. In alcoholic drinks, the tax imposed will now be Php 15.00 per liter of fermented drinks (beer) which costs Php 50.60 or below, and Php 20.00 per liter of the fermented drinks with a higher price. This will keep on increasing to Php 17.00 and Php 21.00 on 2014, Php 19.00 and Php 22.00 on 2015, Php 21.00 and Php 23.00 on 2016, and will be uniform at a tax of Php 23.50 on 2017 and will increase yearly at a rate of 4%. Another classification of alcoholic beverage is the "distilled spirit" which is taxed 15% of its net retail price with an additional Php 20.00 per liter. This tax rate will increase to 20% plus Php 20.00 annually. With regards to wines, it will be taxed Php 200.00 per bottle of 750 ml if its net retail price is below Php 500.00 or below, and it will be taxed Php 500.00 if it costs higher. For cigarettes, taxes imposed on this product will be Php 12.00 per pack for those cigarettes with a net retail price of Php 11.50 or cheaper, and it will be taxed Php 25.00 per pack if the net retail price is higher than Php 11.50. These taxes will increase to Php 17.00 and Php 27.00 on 2014, Php 21.00 and Php 28.00 on 2015, Php 25.00 and Php 29.00 on 2016, and will be uniform at Php 30.00 on 2017 which will increase by 4% annually.

   Looking at these values, we could easily conclude that inflow of revenues will come to the government. However, there are questions that we must ask: How will the collected taxes be allocated among the Filipinos? How can we benefit from the increase in taxes for such products? I think that this is the right time for us to be aware and mindful of what is happening with the money that we pay the government because such taxes are no joke. From what I read from  philstar.com, 15% of the incremental revenues collected will go to the benefit of the tobacco farmers because 70% of these taxes come from the tobacco/cigarette industry. 68% which is 80% of the remaining 85% "will go to the universal health care under the national health insurance program,  the attainment of the Millennium Development Goals (MDGs) and health awareness programs", and the remaining 17% which is the 20% of the remaining 85% will be allocated for "medical assistance and hospitals to be distributed among “political and district subdivisions” is additional pork barrel funds for members of Congress"


  With the Sin Tax Reform Law, I hope for better medical programs of the government because it is what the government is promising us. I hope that these reforms will bring improvements in the facilities and equipment of our hospitals. I hope that these reforms will help in building more hospitals for the poor, and the marginalized sector of our country. I hope that there will be no more news about three to four patients in one bed in a public hospital. I hope that old and rusty ambulances which   carry sick people will be replaced. I hope that there will be enough medicines in every health center in every baranggay. However, along with my hopes are my doubts. I am not doubting the law because I have nothing against it and its intentions. The ones I am doubting are the intentions of the people behind the law. With billions of pesos, and with million lives we are talking about, it is not hard not to question whether the people behind all this have clear and honest intentions. We have been experiencing poverty, and everywhere I look, there is a beggar asking for a penny. This has been going on for so long that I already doubt the people behind this if they could keep their stand on "keeping their principles" when a big sum of money is already involved and could be inside their pockets in just a snap, or whether the benefits these reforms that they are implementing will reach the tables of impoverished households.

Looking at another side of the spectrum, away from the brains behind this Sin Tax Reform Law are the people who can greatly enrich and benefit themselves with this law - the smokers, and the habitual drinkers. It may sound absurd but I really believe that this is one law that could make smokers and drinkers rich if not richer. This law will encourage those heavy drinkers and chain smokers to limit themselves if not totally stop themselves from whatever vices they are up to. With this law, people can start a change in their lifestyle. People can opt to be healthier and be more active citizens of the Philippines, and participate in safeguarding the Filipino's interests and well-being. Also, after giving up cigarettes and liquor, comes other choices or products that they disregarded before for the sake of what they thought was necessary. If they give up cigarettes and liquor, they will come to experience other things that they once gave up for the sake of the "sin products".

Prevention is better than cure. It sounds cliché but it is true. It might be a little late for others to prevent themselves from getting sick, but this law is one good foundation for people to be healthy. Because it is in being healthy that people can function well in the society, and become productive members of the society. It is by being healthy that we can help the Philippines be a better nation. Through investing in our own health, it is not only us who owns the body who will prosper, but the whole society as well because if change is good, surely bigger and better things will follow.

Inspiration:

 I see a lot of people smoking and drinking, but the students outside the Jacinto gate really made me want to make this blog. I know that I am in no position to judge them but I know that I am in a position to care. They are young adults who are wasting two minutes of their lives, puffing that stinky cigarette stick. They are young sons and daughters of parents who work like a log everyday just to send them to school, but they plan on destroying their lives and livers because of liquor.

I hope that with this blog, those people can see what they are missing out- a healthier and longer life. I hope that they will realize that they can do a lot more with the money that they are spending on such products which are taxed heavily, but really we cannot see much of the taxes that we are paying on the services that the government offers. I hope that this blog somehow became an eye-opener for those people, and start a change in their lifestyle before everything is too late. Lastly, I hope that with a start of another year, will be an end of their lack of concern for their body.





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