Policy Paper

Topics: Tax, Tobacco, Tobacco smoking Pages: 18 (6217 words) Published: June 24, 2013
This thesis describes the effect of RA No. 10351 also known as Sin Tax Law in Barangay Pembo, Makati City. This study is conducted in order to identify the effect of Sin Tax Law and the importance of this Law to people. The Sin Tax Law reveals that the tax profits will come to the public health especially to clinics and hospitals to have their own security for health to promote public health. The law is promoting to limit the use of bad products like cigarette and alcohol. In Barangay Pembo, Makati City when the Sin Tax Law was implemented the seller of this subject said that they are not totally affected with this Sin Tax Law because most of their buyers are continued using of the cigarette and alcohol even though the price is high. On the other hand of the effect of this law, some smokers and drinkers are disappointed because of high price cigarette and alcohol unlike before without a Sin Tax. Aside from the disadvantages of this law, there have advantages or good things about this law because most of them become thrifty in handing their budget in using their bad habit. And the study will promote to avoid sickness and lessen the trouble or crime due to drinking alcohol and the number of rate causes of heart attack due to using cigarette. It’s common to think of alcohol and tobacco as subject to high taxes, and in part, the revenue gained from these taxes helps to offset some of the negative effects they can cause like health problems. These laws were meant to keep people from behaving in certain ways because it was more expensive. On the other hand, many people either give up those things that are taxed too much, or they pay the tax because they would rather their behavior remain legal. It’s good to understand that with this law the government has a concerned for the public health and would provide extra funds for better healthcare and facilities.



In the Philippines, 240 Filipinos die every single day due to tobacco-related diseases. It is unfortunate that most of Filipino smokers belong to the poorest of the poor. These Filipinos have no means to pay for treatment once disease kicks in. There are also a significant number of youth smokers who will later on face the same problems brought about by tobacco use. With a substantial increase in tax and the correction of a weak tobacco tax system, the youth and the poor are protected from continuing or starting the habit of smoking. Making it less affordable to these vulnerable sectors is an effective measure in ensuring that their right to health is preserved.

According to Health Justice Philippines (HJP), Tobacco will kill an estimated one billion people in the 21st century, in absence of aggressive action by government to advance tobacco control. In the Republic act No. of 10351 also known as the “Sin Tax’’ Law it is refers to a kind of sumptuary tax: a tax specifically levied on certain generally socially proscribed goods and services, for example alcohol and tobacco, candies, soft drinks, fast foods, coffee, and gambling.

Sin tax is used for taxes on activities that are considered generally unwanted. Common targets of sumptuary taxes are alcohol, tobacco, gambling and vehicles emitting excessive pollutants. Some jurisdictions have also levied taxes on illegal drugs such as cocaine and marijuana.


Historically, Sin Tax is an established scheme in the early 1500s, Pope Leo X underwrote his plentiful lifestyle in part by taxing licensed prostitutes, and Peter the Great preyed on Russian vanity two centuries later by charging men who grew beards. In the Federalist papers, American patriot Alexander Hamilton proposed an excise tax on alcohol to boost revenues and curb consumption. The measure, enacted in 1791, sparked the Whiskey Rebellion, in which federal authorities were forced to overturn an increasing by furious Pennsylvania settlers. ‘Way back in 1996 when...

Bibliography: Hazel D. Apparase- Revisiting Traditional Politics a case study of a seasoned Politician in Barangay South Signal Village ( Umak Library) (page 33), 2012.
Yolly Fuentes- Dunton March 20, 2012.
Snowdon, Christoper, Michelle Minton (2013). The Wages of Sin Taxes http://cei.org/studies/wages-sin-taxes
Macaraig, Ayee (2013) http://www.rappler.com/business/17754-historic-sin-tax-bill-awaits-aquino-signature
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