Reaction sin tax law

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Where does sin tax money go

What kind of income would that be? Recto decried what he thought was lack of support from finance officials for his version of the sin tax bill. Increasing the health budget The taxes are working. Nevertheless, as policy instruments, sin taxes are extremely blunt. This paper tries to identify the effect of the tax using producer-level and geographic variation. But the revenues to be generated by the House version will hardly cover the funding gap for the Universal Health Care Law recently signed by President Duterte. In , a massive civil society communications campaign helped influence legislature and the public. Self-rationing is likely a second-order consideration in our context. They can help dissuade people from consuming this stuff without actually taking money out of their pockets, right? He said the government is unlikely to realize its revenue target. Sin tax is a form of an excise tax. Sin taxes do change behaviour. Those kinds of policies, too, can make more sense when you have these goods that are consumed more by poorer consumers.

Other consumer responses may undermine the potential of tobacco taxes to lessen smoking-related harm. And here comes this bill passed without proposing alternatives that would help these people; it should be taken an account in the first place. Our results are especially applicable to countries where: the sale of individual sticks is common or multiple pack sizes are available; a large share of smokers use non-cigarette products; or a large price spread exists between discount and high-end cigarette brands.

Alcohol and tobacco are addictive, so demand for them is not as responsive to price changes as, say, the demand for airline tickets to fly abroad. Second, a smoker may switch to another brand of cigarettes following a price increase. Sin taxes are especially regressive, since poorer people are more likely to smoke and tend to drink more alcohol and sugary drinks.

Reaction sin tax law

Lockwood: Again, this is an insightful question that cuts to the heart of the issue. An edited transcript of the conversation follows. So a further concern is that they affect low-income households most. The amount can go up to P8 billion by year-end.

sin tax law philippines 2018

Using two panels of microlevel data from the International Tobacco Control Southeast Asia Study, collected in andwe estimate the effects of a substantial excise tax increase implemented throughout Thailand in December

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Reaction: Sin Tax Law Essay Example