CIGARETTE FIRMS CAN’T PANIC IN THE FACE OF A NEW TAX SCHEME – Opinions and observations differ on the recent implementation of the highly controversial new “Sin Tax Reform Law.” Lawmakers and health authorities warned that the risk of acquiring lung cancer and other respiratory illness has increased threefold in the past decade. As a result, it became one of the country’s dreaded diseases. So what has to be done in a country growing ever more populous, which sounds small but represents an enormous number of smoking fanatics?
Well, forget the old notion that only adults smoke or that smoking seldom kills. Lung cancer and other related ailment caused by excessive smoking no longer cares about age and class distinction – it’s becoming prevalent in mansions or even in slums and smokers are getting younger never seen before. Shrewdly, smoking actually is forced habit and the number of tobacco addicts is somewhat staggering. The worsening situation prompted health authorities to appeal to our legislators to enact a law that would monitor and regulate the sale of cigarettes and other tobacco products – eventually to protect the people’s health.
Aside from health concerns, the enforcement of the new “sin tax” scheme is aimed at generating additional government revenues, which in turn could be used for priority projects. But local cigarette manufacturers decried the approval of the new law, which they described as anti-local industry. They say the law entails endless problems and observed that policymakers and government regulators seemed have a commitment to raise tax collection targets, but when it comes to a scheme, it’s less clear. Goodness gracious! It’s now clear with the implementation of the new excise tax on cigarettes and other tobacco products, isn’t it gentlemen?
In addition, they strongly argued that local cigarettes will become more unaffordable for many Filipino customers and consumption will be greatly reduced because smoking fanatics will switch to cheaper and non-regulated black market or smuggled brands. In this case, they ranted it undermines the public health objectives of the “sin tax” scheme that eventually would likewise be enervated by smuggled and faked cigarettes, which do not pay taxes. On the other hand, local tobacco growers and small manufacturers, which produced only low and medium-priced brands, will be directly threatened in their existence and the livelihood of about 3 million Filipino farmers who depend solely on the tobacco industry will be also greatly affected.
Furthermore, people in the tobacco industry lament that the new tax scheme is excessive and unprecedented and that no other country in the world has increased that much. What it hurts them most is that under the directive, all improved brands will increase by 6 percent while tax rate on low and medium-priced brands will increase by as much a 1000 percent. They claimed that government regulators supposedly should have adopted a one rate system for cigarette brand levels – on all brands “to level the playing field.” But manufacturers can’t actually panic in the face of a new tax scheme simply because smokers don’t buy smuggled or non-regulated brands to do unscrupulous traders a favor. Smokers buy because they like the taste and they think prices are much cheaper compared to locally-produced cigarettes.
Right now, the consideration for all of us, anti-smoking groups and health buffs in particular, is how they can make sure that the collective move undertaken by people in the tobacco industry is actually adding a bit of value to the people’s health and well-being. Say what they will about cigarette smoking, but anybody worth his grain of salt knows that the habit is extremely bad for the health. But that mere observation offers little or no comfort at all to the cigarette producers. The logic of their common interest suggests that the new “sin tax” scheme is highly detrimental to the country’s tobacco industry.
For our part, we don’t actually discourage smokers from doing their habit, but we will only encourage them to refrain from too much use because there is health risk associated with excessive smoking. And besides we don’t care whether the tobacco excise tax will increase from 6% to 1000%. Our only concern is that aside from additional cost on one’s budget, is the rising cases of lung cancer and other respiratory ailment caused by smoking among Filipino users. However, to those who haven’t change their minds yet and decided to continue the habit while they felt they’re still quite healthy – on the surface, of course, we’re not going to stop them. Our only advice – life is short, please don’t make it shorter!
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