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Sin Tax Research Paper

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Sin Tax Research Paper

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  • October 4, 2012
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SIN TAX (HOUSE BILL 5727) SHOULD BE LAGALIZED IN THE REPUBLIC OF PHILIPPINES (+)

In partial fulfillment of the requirements
Of the subject PHIN11A
Submitted by:
Ceejay Martinez
Abby Padua
Merene, Myka Kim
Villareal, Peter James
On
October 3, 2012
To:
Ms. Violeta Tabin

PREMISES

1. Smoking cigars and drinking liquors are bad to health. 2. Number of accidents will be lessen.
3. Lessen the number of users.
4. It may cause air pollution.
5. It may stop the production of cigars and liquors.

I. Introduction

Sin tax is a tax levied on a certain goods and services that are seen vices, such as alcohol, tobacco and the like. Sin tax is used for taxing activities that are considered undesirable. These types of taxes are levied by the government to discourage individuals from partaking in such activities without making the use of the products illegal. Like other taxes, sin tax also provides a source of government revenue.

Since the Senate wants to pass or reform the Sin Tax Bill for some reasons like discouraging youth or people from smoking and alcohol drinking, for health purposes and the like, it has been an issue. According to Snowdan (2012), taxes on tobacco and alcoholic beverages are doubly regressive because they are disproportionally consumed by people on lower incomes, or the poor. According also to some research, a heavy smoker or an alcoholic is unlikely to lessen consumption because of an increase in price; making sin taxes an unreliable way of reducing consumption or improving public health. Thinking on taxing vices, sin taxes will really be an effective way to convince people from drinking alcoholic beverages. Thus, an increase in tobacco prices has a little or a small effect on using these vices because it is inelastic. The objective of this paper is to know if sin tax levied on tobacco really discourage the mass, especially the poor, from smoking

A. Historical Background

1. Foreign History...