Bar owners feel Sin Tax a threat

by Che Palicte
Davao City bar owners feel threatened by the Sin Tax law for they believe it would mean less revenue for their business.
The Sin Tax reform law will restructure taxes on tobacco and alcohol products sold in the Philippines, with alcohol and tobacco products currently in the market to be initially classified according to a 2010 price survey conducted by the Bureau of Internal Revenue (BIR), using the suggested retail prices on a sworn statement of the manufacturer or importer. The prices will be subject to validation by the BIR, followed by revalidation nine months later.
An understatement of 15% or more will make the manufacturer or importer liable for additional excise tax equivalent to the tax due and the difference between the understated suggested net retail price and the actual net retail price.
.     Eric Joseph Idong, owner of Zigudu Restobar located in Torres St., said he had anticipated that this law would happen and that It would threaten their business, although he is confident that the bar business would still survive even if the sin tax law was approved.
“Our revenue will surely be affected, pero kahit ganun we will still provide quality entertainment for Dabawenyos,” Idong said, adding that the prices of their liquor remain the same as of this moment.
Idong is hopeful that they won’t experience a big loss in their revenue because his 32-member  crew relies on the bar for their living. “Maraming umaasa sa bar, and marami pa itong matutulungan so I’m hoping na tatagal pa ito even if the Sin Tax law is implemented today,” Idong said.