Residence Bill 5727, or the Desprovisto Tax Bill, aims to restructure the present taxes imposed on liquor and smoking cigarettes goods. Duties on the products are a potential revenue source that will help fund the Universal Medical Program from the administration. Also, higher taxesвЂ”and consequently higher costsвЂ”are seen as a deterrent for the consumption of " sinвЂќ products, whose adverse effects are mostly borne by poorer portions of contemporary society. Why are we assisting it?
1 ) To promote health by discouraging vice.
2 . To collect even more revenue intended for healthcare.
According to the Section of Health (DOH), the Philippines has an estimated 17. 3 , 000, 000 tobacco consumers, the most volume of smokers in Southeast Asia. Filipinos on average consume you, 073 cigarette sticks annually, while the smokers in the region take in less than a 1, 000 sticks annually. This excessive consumption price is seen as an effect, among others, of the extremely low cigarette prices within our country. Cigarette smoking is responsible for 71 percent of lung cancers deaths in the world. Consequently, chest cancer is recognized as a prime form of malignancy in the Thailand. DOH stats reveal that 10 Filipinos die every single hour due to smoking. In line with the DOH, a 10 percent increase in tobacco taxation will reduce the number of people who smoke and by two million by simply 2016. A tremendous decline inside the number of cigarette smokers will likewise reduce the number of smoking-related fatalities. Revenue
The Department of Finance (DOF) has decided the following imperfections in the current system of taxing sin products: 5. The current strategy is still within the Price Classification Freeze, wherein old brands are taxed differently coming from new types. * The program follows a multi-tiered duty structure that may be prone to theВ downshiftingВ of smokers to cheaper cigarette brands (which does not decrease smoking). For example , based on 1994-2010 statistics furnished by the Bureau of Interior Revenue (BIR), it was discovered that buyers had downshifted from medium-priced...