SIN TAXES

Gov't looks at raising 'sin taxes'

abs-cbnNEWS.com

Posted at 04/17/2011 2:56 PM | Updated as of 04/17/2011 6:18 PM

MANILA, Philippines – The government is more keen on raising "sin taxes" than value-added tax (VAT) to increase revenues, a Department of Finance (DOF) official said.

DOF Undersecretary Gil Beltran said in a statement that the government is looking into the passage of a bill that will impose higher taxes on sin products like alcohol and tobacco to help contain the government's budget deficit.
Beltran said the bill may be filed in Congress next year.
"We have started looking at the revenue impacts of several proposed tax measures, and by next year, we will start filing [new bills]," he said.
In its first year, the Aquino administration has been running after alleged tax evaders to boost state revenue without raising taxes.
Finance Secretary Cesar Purisima earlier said the government wants to plug tax leaks before introducing new tax measures, including raising sin taxes.
Aquino has ordered no higher tax hikes until the government has managed to plug tax leaks, Purisima added.
"Down the road, I would like us to go to Congress, but after we have done our homework then we will have the moral ascendancy to ask for increases," he said.
Last month, legislators submitted a proposal to reform the sin-tax structure, which will raise excise collection from the cigarette industry.

Eyeing an 83% rise in cigarette prices from where they are at present, lawmakers Niel Tupas and Dina Abad of the Liberal Party said the government can generate nearly P200 billion from sin taxes over a 3-year period plan.
The proponents are seeking to get the bill passed soon, so the project can start next year.
The government will go through the plan, despite then-presidential candidate Aquino’s promise that no new or higher taxes will be imposed in his term.

Reaction:Sin taxes are state-sponsored tax that is added to products or services that are seen as vices, it is typically added to liquor and cigarettes. Would it be beneficial to the people of this nation? Yes of course. it will be beneficial in reducing harmful behaviors and increasing tax revenue.

 Sin taxes would be beneficial in reducing behaviors that is harmful to society and to the individual and at the same time raise a little money for the state. For instance, using tobacco and drinking alcohol is usually associated with various health problems such as cancer and heart disease. Imposing high taxes on cigarettes reduces the amount of tobacco consumers who can afford, which may in turn reduce the negative health impacts of smoking. It would also help the state to increase it's tax revenues  because it generate an enormous amount of revenue and are usually easily accepted  by the general public because they are indirect taxes that only affect those who use the products.

I would be happy if the government will go / impose the raising sin taxes because it will give a way in the reduction of my father's daily consumption of cigarettes since it is already a part of his daily routines, and the decrease of his cigarette consumption would lead to the increase of my allowance for clothing, transportation and school related fees. It would also be beneficial for me as a person who has a weak immune system because it would lessen the risk that I could get from second hand smoking, and to avoid from hospitalization so the budget intended for family expenses will as ease. If Sin taxes will be imposed and implemented wisely in the place where I'm living, the way of living will become more productive because the accumulated sin taxes will be used or utilized for the improvement of public utilities or government projects that aims the elimination of poverty. 

If this recommendation will be realized it gives us a best result in our community or the nation as well. It will help to improve the economic status of the country.