It All Starts with a Question ( A Philosophical Paper)

Article: Aquino signs Sin Tax into law

By: Dexter San Pedro, InterAksyon.com
December 20, 2012 11:41 AM

InterAksyon.com
The online news portal of TV5

MANILA, Philippines - (UPDATE6:58PM) President Benigno Aquino III has signed into law the sin tax reform measure which is expected to raise additional P33.96 billion on its first year. Passage of the law drew praise from a regional tobacco-control alliance, which warned, however, that "challenges" remain and the law is just the first step in a series of crucial reforms.

Malacañang said the new law, Republic Act 10351, is the only tax reform on alcohol and tobacco products that favors both the government and the Filipino people.

Of the total revenues expected for the first year of implementation, P23.4 billion will come from cigarettes, P6.06 billion from distilled spirits, and P4.5 billion from fermented liquors.

The new excise tax for cigarettes adheres to the commitment of the Philippines to the World Health Organization to increase the ratio of tax to price from the current 29.1 percent to 52.5 percent in 2013 and 63 percent by 2017.

To prevent excise tax from being eroded by inflation, it will be increased by four percent every year effective 2016 for distilled spirits, and 2018 for cigarettes and beer.

"This is an early Christmas gift to millions of Filipinos who will benefit from the universal health program and who will be weaned out from vices," Aquino said in his speech aired over state-run Radyo ng Bayan on Thursday.

Aquino also assured tobacco farmers that they have nothing to fear from the new law.

The new law will provide additional funding for tobacco farmers' livelihood support program.

Eighty percent of the incremental revenues after deducting the support for farmers will be allocated for the universal health care program and 20 percent will be allocated for nationwide medical assistance and health enhancement facilities program.

Reflection:

I know that we have different views and criticisms on this “Sin Tax Law”. Some are pros to it while some are cons. Whatever is it in our views; we are free to express ones’ side as long as it is not prejudicial to anybody.

Being aware of the many negative effects brought by our different vices, is the “Sin Tax Law” justifiable as an act that will lessen the consequences that these vices will bring? This is the first question that my mind asks when I heard about this news. But as I read the above article, I found out that indeed the government do really have an objective why the sin tax which is once a reform is pursued into law. Well, knowing that “Sin Tax Law” is not only for revenue but also for the health care program of the country, I feel glad that even in the midst of the many controversies that our government faces, still, there is this sensitivity in each of us to care about one another.

The government clearly tells us that through this law, the incremental revenue will increase this year and for the succeeding year. This is one of the positive impact which will benefit our economy and also to the people behind the economy.  I appreciated that portion in the above article where it has been stated that the incremental revenue will be allocated to the tobacco farmers, universal health care program and to the medical assistance and health enhancement facilities program. This goes to show that the government really takes a clear path of allocating future gains that we might get and it’s good to know that a bigger portion of it is dedicated to health and medical programs which I think is one of our fundamental needs. Also, I’d like the idea that the portion of the revenue  will be given as support to the tobacco farmers who might suffer as a possibility of lesser demand of tobacco in the future. These impacts that the article give us are too general in scope and I want to express my own views in a specific way by relating it to the reality that we are facing nowadays.

(a)illustrates how smoking unintentionally affect everyone

(b)few of those youth who are influence with smoking vices

(c) one of those families who are damage because of vices

I believe that this law is concerned not only to those who are into vices of smoking or drinking but also to all the people who are affected by the said vices. Who are then these people affected by these vices? (Consider the picture at the left) These are us who are said to be third hand smokers who breath an air filled with smoke and are said to be more prone to diseases caused by smoking. Another are our innocent youth who are being introduced to these many vices and some have been influenced to do it. Also are the families of these people who are into vices who suffered emotionally, physically and financially. For instance, we are aware that many of the Filipino families nowadays are broken because of vices of one of the members of the family. Many of the wives and children suffered from the violence of their husbands or father every time they’re drank. Lastly are the innocent lives that are at stake due to the possibilities of crimes and accidents brought by those who are into vices. Common example is that many lives are wasted because of some drivers are drank resulting into accident. These are just few of the many instances that happen in reality. What I am implying here is that the “Sin Tax Law” is beneficial to all of us in different ways. I know that this law will not totally dispose these vices but at least it will be lessen. Imagine that if in every year the tax of cigarettes and alcohol will increased by four percent, sooner or later, these vises may be totally dispose in the country. Many lives and homes will be saved and lived happily and productively. Death rates and crime rates resulting from these vises will also fall. Everybody will live a healthy life. Having all these implied benefits, I guess, its right to say that indeed our government is doing     efficiently.

In behalf of all these positive views, I have this question of whether the governments do have some alternatives to those people who are working in manufacturing companies of cigarettes and alcohol. We all know that they are the most affected field in our economy because they have the burden of tax. With this, there is possibility that the company will lay off workers because there may be lesser demand of cigarettes and alcohol because of the excised tax. If this happen, how can these workers provide the needs of their families who depended on them? Therefore, I suggest that the government must have an action on the possible unemployment that our country may face in the near future.  I think it's better to make an action for the possible consequences as early as today so that  there will be no problems in the long run and I guess this law will never be equitable if there are people suffering in return.  

References:

http://www.dh.gov.uk/error/404.html
http://article.wn.com/view/2012/10/12/With_lung_cancer_quitters_do_better_than_smokers/
http://www.demotix.com/news/1359372/protest-rally-against-sale-and-consumption-alcohol-dimapur#media-1359365