‘Sin taxes’ now a law

By JUNE S. BLANCO

BAD news for smokers and drinkers?

President Benigno Aquino III has signed the “sin tax” bill making it into the Alcohol, Cigarettes and Tobacco Tax law.

This effectively raises the prices of cigarettes and liquor, aimed on one hand to curb, if not, eliminate the smoking and drinking habits of the Filipinos.

But at the same time, it is geared to raise more revenue for the cash-strapped country.

Rep. Erico Aumentado (Bohol, 2nd District), had co-authored the House version of the bill. He said revenue from the sin taxes will finance the Universal Health Care (UHC) program, expanding its coverage, reduce the prevalence of smoking as well as the smoking-related disease burden estimated at P177.2 billion in 2011.

The increased revenues will strengthen fiscal and macroeconomic health, improve credit and investment grade rating as well as infrastructure and social services. The sin taxes can construct more school buildings, hire new teachers, and provide computers with internet for the Information and Communications Technology (ICT) program for students and teachers in support of the K plus 12 program of the Department of Education (DepEd).

The solon also said the tobacco taxes will reduce the number of young smokers. Likewise, reforms under this law will protect the poor who suffer the brunt of smoking-related diseases. To note, majority of the 300,000 Filipinos who die every year of sicknesses like cancer come from the poor.

He observed that four out of 10 of the poorest 20 percent of Filipino adults are current smokers compared to only one of four of the richest 20 percent who smoke regularly.

Besides, he added, the tobacco farmers will get earmarked funds equivalent to 15 percent of the incremental revenues from tobacco taxes for alternative livelihood and safety nets. Leveling the playing field will erode the power to dictate the price for the tobacco farmers’ produce and will mean better prices for them, he explained.

Aumentado also said the new revenues will increase the resources of local governments and congressional districts for PhilHealth and other health programs.

He said the reforms spell long-term prosperity – stem the silent epidemic of smoking and alcohol-related diseases and deaths, improve the lives and capabilities of the nation’s work force, enhance the quality of governance and enable long-term inclusive growth.