Sin Tax

As the end of the year 2012 approached, the passing of the Sin Tax Bill grew into being the “talk of the town” – or perhaps, of the entire country. On the 20th of December of the same year, President Noynoy Aquino finally signed Republic Act No. 10351, better known as the Sin Tax Reform Act of 2012 which was implemented on January of the year 2013.The sin tax law is expected to raise 30 billion pesos ($750 million) which will be used for the health care services for over 5 million poor families just in 2013, its first year of implementation.
The Sin Tax Law aims to increase the government fund, which will be used to fund health benefits for the poor and aid in modernizing and building new hospitals as well as to discourage the public from engaging in vices by raising the prices of cigarettes and alcohol, thus, tax revenues from the cigarette and alcohol industry is also believed to rise in the following years. The researcher chose to conduct a study on this because they believe that this law would cause a domino effect in the entire country, wherein each and every one will be affected. The said law already received favorable, as well as unfavorable opinions from the general public, though some remain unaffected.
Knowing the domino effect that the Sin Tax Law would cause, the researcher will also forecast how the said law would influence the cigarette usage in the Philippines. Furthermore, this study would serve as an answer to the question, “Did the passing of the sin tax law serve to be beneficial to each and every citizen, as well as the economy of the