Sin Tax Reform Act of 2012
Paper Presentation on
[REPUBLIC ACT NO. 10351]
AN ACT RESTRUCTURING THE EXCISE TAX ON ALCOHOL AND TOBACCO PRODUCTS BY AMENDING SECTIONS 141, 142, 143, 144, 145, 8, 131 AND 288 OF REPUBLIC ACT NO. 8424. OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED BY REPUBLIC ACT NO. 9334, AND FOR OTHER PURPOSES
Commonly known as
SIN TAX REFORM ACT OF 2012
“Stick to One”
OVERVIEW Sin Tax is a tax levied on products or activities, which are considered sinful or harmful and considered as objects of social disapproval, such as liquor and tobacco. Sin tax or sometimes called sumptuary tax is meant to reduce the consumption of those products or services by taxing them, aside from the common sales tax, to make them more expensive, less affordable and less accessible by consumers. According to the Department of Health (DOH), the Philippines has an estimated 17.3 million tobacco consumers, the most number of smokers in Southeast Asia. Filipinos on average consume 1, 073 cigarette sticks annually, while the smokers in the region consume less than a thousand sticks yearly. This high consumption rate is seen as a result, among others, of the very low cigarette prices in our country. Smoking is responsible for 71 percent of lung cancer deaths in the world. Consequently, lung cancer is the leading form of cancer in the Philippines. DOH statistics reveal that 10 Filipinos die every hour because of smoking. According to the DOH, a 10 percent increase in tobacco taxes will reduce the number of smokers by two million by 2016. A significant decline in the number of smokers will likewise reduce the number of smoking-related deaths. Meanwhile, drinking alcohol, though effects are relatively less severe health-wise than smoking, has posed a number of costs on the individual and society. House Bill 5727, commonly known as the Sin Tax Bill and now the Sin Tax Reform Act of 2012, restructured the taxes imposed on alcohol and tobacco goods patterned since
[REPUBLIC ACT NO. 10351]
AN ACT RESTRUCTURING THE EXCISE TAX ON ALCOHOL AND TOBACCO PRODUCTS BY AMENDING SECTIONS 141, 142, 143, 144, 145, 8, 131 AND 288 OF REPUBLIC ACT NO. 8424. OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED BY REPUBLIC ACT NO. 9334, AND FOR OTHER PURPOSES
Commonly known as
SIN TAX REFORM ACT OF 2012
“Stick to One”
OVERVIEW Sin Tax is a tax levied on products or activities, which are considered sinful or harmful and considered as objects of social disapproval, such as liquor and tobacco. Sin tax or sometimes called sumptuary tax is meant to reduce the consumption of those products or services by taxing them, aside from the common sales tax, to make them more expensive, less affordable and less accessible by consumers. According to the Department of Health (DOH), the Philippines has an estimated 17.3 million tobacco consumers, the most number of smokers in Southeast Asia. Filipinos on average consume 1, 073 cigarette sticks annually, while the smokers in the region consume less than a thousand sticks yearly. This high consumption rate is seen as a result, among others, of the very low cigarette prices in our country. Smoking is responsible for 71 percent of lung cancer deaths in the world. Consequently, lung cancer is the leading form of cancer in the Philippines. DOH statistics reveal that 10 Filipinos die every hour because of smoking. According to the DOH, a 10 percent increase in tobacco taxes will reduce the number of smokers by two million by 2016. A significant decline in the number of smokers will likewise reduce the number of smoking-related deaths. Meanwhile, drinking alcohol, though effects are relatively less severe health-wise than smoking, has posed a number of costs on the individual and society. House Bill 5727, commonly known as the Sin Tax Bill and now the Sin Tax Reform Act of 2012, restructured the taxes imposed on alcohol and tobacco goods patterned since