A Position Paper on House Bill 5727

Raineir Rhett Concha

Drinking and smoking have always been an ubiquitous part of Filipino lifestyle. For some, dabbling in vice serves as rite to adulthood. In many liberal cultures including ours, one is not considered a real man unless he drinks or smokes. In many points of view, especially those of religion, these vices are obviously a sin. But God endowed us with free will to choose. A sin tax is used to reduce consumption on goods involving what those who uphold our moral fiber consider a bane to our society. A kind of sumptuary tax its purpose is said to create greater tax revenues on alcohol at tobacco products. It may also be considered as a regressive tax as it over burdens the poor who depend on cigarettes and alcohol for income. The retailers, consisting a huge part of the demographic, will be at the losing end should this bill be enforce. There is often an inverse relationship between the taxes of said products over the taxpayers ability to pay, therefore the poor pay greater in their income tax. When there is an increase in tax. The manufacturer would definitely in turn raise product prices, which would mean a greater increase in retail prices. Rich business men are not as affected for they buy in whole sale and pass the burden of price increase to the retailers whose life and limb would dispose of it. Who does all the retailing? It is our nations poorest who sell them on streets and bus terminals.A rapid increase in tobacco and alcohol prices would deprive the poor of their livelihood. The demand for tobacco and alcohol is unquenchable. Demand is not dependent on price. Regardless of increased prices, people will find ways to appease their desire to smoke and drink. Filipinos are notably resourceful in finding ways in making it cheap. This evident in our markets today, often enough we would see ukay-ukay stalls for clothes, basic accessory and gadget stalls set up by a Muslim from smuggled goods of Malaysia and who could forget the cheap smuggled hardware products made in China by Chinese men. When there is an influx of demand of cheap products it will always result in an illegal supply, especially when the products of neighboring countries are much cheaper. Black markets will sprout like beans and smuggling would amplify as to serve the demand.

A Position Paper on House Bill 5727

Raineir Rhett Concha

Let us remember that there is no tax in the black market, meaning a greater loss to our governments tax revenues. Suppose if we even find a way to stop smuggling and impair the black market. This would not affect consumers behavior in the way they desire these goods. It would only resort to another alternate supply. Similar to the prohibition era in the United States wherein liquor was banned, this compelled people to make their own homemade breweries or distiller and without the proper amount of alcohol check by chemist will result in a hazardous poison. Instead of buying filtered per-pack cigarettes, Filipinos would now grow their own tobacco. And by fashioning it with leaf of the lumboy tree you would have a homemade high-tar, high-nicotine cigar without the filter. Smoking and drinking is part of our tradition. It is the poor who will suffer gravely in this sin tax bill. The desire and demand for it will not go down by mere price increase. Filipinos will always find way in procuring said goods by illegal means. So why restrict us? Restriction would only result to illegality and confusion. Let us choose our destiny endowed by us in our constitution, for this is our happiness.