• New Year, New Law: The Sin Tax Reform Bill of 2012

      The New Year not just brought new resolutions, it also ushered higher taxes on “sin products” such as alcohol and tobacco products—beer, cigarettes, etc.

      Dubbed as an early Christmas gift for the Filipino people, President Noynoy Aquino signed Republic Act No. 10351 or the Sin Tax Reform Bill last December 20, officially transforming it into law effective January 1, 2013. The objective of which is to increase availability of health benefits while discouraging citizens to spend on sinful products.

      Tax increase on products will depend on its retail pricing until a uniform tax treatment begins on 2017. For example, cigarettes with a retail price of P11.50 and below will have a tax of P12 per pack while those with a higher retail price will be given a tax of P25.00 per pack. The tax rates will go up to P17.00 and P27.00 in 2014, P21.00 and P28.00 in 2015 and P25.00 and P29.00 in 2016. By 2017, all tax rates for cigarette packs will be at P30.00, rising by 4% annually after that.

      On the cases of beer products, if your net retail price is P50.60 or below, a sin tax of P15.00 per liter will be added and P20.00 per liter for those who have higher retail prices.

      For fermented liquor (beer), the tax is P15 per liter if the net retail price is P50.60 and below per liter, and P20 per liter for those with a higher price. The same tax rate increase annually will be imposed on beers and will have a uniform tax rate of P23.50 will be imposed by 2017, again with an annual increase of 4%.

      Here is a quicker reference for the new tax rates as per www.rappler.com

      Tobacco products
      Cigarettes packed by hand (this comprises bulk of tobacco products produced in the country) - P12.00 per pack

      Cigarettes packed by machine - P12.00 if the cost per pack is P11.50 or below; P25 for packs that cost more than P11.50.

      Cigars - additional P5.00 per cigar

      Alcoholic beverages
      Distilled spirits - P20 per proof liter

      Sparkling wines/champagnes
      - P250 if the net retail price (excluding the excise and value-added taxes) per bottle of 750 ml is P500 or less;

      - P700 if the cost is more than P500

      Still wines and carbonated wines containing 14% of alcohol by volume or less - P30.00

      Still wines and carbonated wines containing more than 14% of alcohol by volume but not more than 25% of alcohol by volume - P60.00

      Fortified wines containing more than 25% of alcohol by volume shall be taxed as distilled spirits

      Fermented liquors- P15 if the net retail price (excluding excise and value-added taxes) per liter of volume capacity is P50.60 or less

      - P20 if the net retail price (excluding excise and value-added taxes) per liter of volume capacity is more than P50.60

      - P28.00 for fermented liquors brewed and sold at microbreweries or small establishments such as pubs and restaurants, regardless of the net retail price.


      Predicted sin tax collections for 2013 will amount to P33.96billion, P42.82B in 2014, P50.63B in 2015, P56.86B in 2016 and P64.18B in 2017, amounting to P248.49B in just 5 years. This is according to Sen. Franklin Drilon who principally authorized the said bill. 70% of said collections will be coming from tobacco products. This said amount, provided that all will be transparently and honestly reported and liquidated, will help in the many programs that the government is planning for the citizens.

      Percentages for said incremental revenues are set for programs beneficial to tobacco farmers, universal health cares, the DOH required programs.
      Our forums are abuzz with differences of opinions regarding said law, with intellectual and in-depth discussions of the domino effect of said law. While there are a lot who agree to the said law, especially on the direct effect of cutting down vices, other iSTORYAns have thought as deep as the increase of job dislocation in affected industries; the transparency of where the tax revenues would go (BIR sure has a lot in their hands for the coming years) and the possibility of smuggling and other illegal acts. You can view and participate in the discussions at this thread: https://www.istorya.net/forums/politi...arette-25.html

      So, mag iSTORYA TA (Let's talk) : What do you think of this new law? Are you for or against the Sin Tax Reform Bill of 2012? What are your thoughts?
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      Comments 25 Comments
      1. Dondon's Avatar
        Dondon -
        Mao ni ang tinuod nga end of the world!
      1. Kyukies's Avatar
        Kyukies -
        screw this law!!!
      1. P-Chan's Avatar
        P-Chan -
        against ko ani... mag tu.on nah ta ug himo ug atong beer, moonshine or tuba!

        when is smoking and drinking a "sin"?

        hassola ani mga bago na "laws" nga perting wai ayo... mas maayo mag himo nalng sila ug law tax.. taga law ila i.pasa ato i.tax
      1. vanz2008's Avatar
        vanz2008 -
        Purga ang naa bisyo.. Idol noy2x doomsday prepper stock na daan sigarilyo..
      1. sheranne06's Avatar
        sheranne06 -
        hasol au ni nga law!di na nuon mi ka yanu2x ug tagay.. magparactis mi ug tuba nalang amung imnon..haha.. kay mahal na ang beer.
      1. peachjay26's Avatar
        peachjay26 -
        c Pnoy ry wa ng problema ani ky can afford man xa..kita ani?puasa nlng!.haha
      1. mike_believe's Avatar
        mike_believe -
        Sin tax? Pwd tax-an ang mangurakot? Imagine pila kaha "SIN" tax for that, projected nako subra pas P33.96billion for 2013. P-noy you let me down. As they say, hate the system not the politicians.
      1. mike_believe's Avatar
        mike_believe -
        Sin tax? Pwd tax-an ang mangurakot? Imagine pila kaha "SIN" tax for that, projected nako subra pas P33.96billion for 2013. P-noy you let me down. I think, alcohol and cigarettes are one of the things that make us feel better especially in this frreaking WONDERFUL country. How can they take it away from us?

        As they say, hate the system not the politicians.
      1. IneedAhotel's Avatar
        IneedAhotel -
        I drink but I don't smoke. So my take on this is that this tax is implemented to generate revenue. we all know how corrupt the system is so for some its useless since the money will go to waste but we should also think of the pros about this law. Since the cost of the stick went up we tend to control the habit of smoking at least for those who's income are limited. For those who can afford, well lucky for them. HEALTH is WEALTH. I don't smoke but as we know 2nd hand smoke is more dangerous in nature. If we don't want the corrupt system to drain all of the sin tax's sin then avoid smoking or drinking. I know it's difficult for some to stop either they just accept the sin tax as it is or look for alternative vice where this tax doesn't exist.
      1. Reybooooom's Avatar
        Reybooooom -
        errr... more tax... whatta bummer...
      1. emailroy2002's Avatar
        emailroy2002 -
        no matter how much tax you take and how much money you make it doesn't make a better economy if we don't use the money wisely.

        Goverment taking money from sinners and generating more sinners..
      1. ad_dur's Avatar
        ad_dur -
        Sa amoa most small time tindahans already stopped selling cigarets kay mahal na daw. Mga kaila naku nag bagolbol pud kay wala na silay kapalitan ug usi. I support this bill. What to expect with this bill? This will invite smuggling. Gov't may or may not earn revenue with this bill. Imported (smuggled) usi's are a lot cheaper compared to local products. Smokers still has the upper hand to continue with their vices.

        Now a days people has no money to buy food but no budget for their daily consumptions (bugas,sud-an ect ...).
      1. sgtbudoy's Avatar
        sgtbudoy -
        ma bag-as ug sayo tung mga bisyohan ani.

        P33.9billion for 2013, wow ka daghan sa kurakuton nila ani. hatag nalang na nako ang 0.9billion bi ako i palit ug tsenilas.
      1. rio9098's Avatar
        rio9098 -
        mao jd bitaw purpose ani nga law.. para mag.puasa ta hangtud maundang kay can't afford na.. hehehe
      1. rick_mozy's Avatar
        rick_mozy -
        moubos na ang death rate sa pinas kay mahealthy na man ang mga tawo. mosamot na ta ka overpopulated.hehehe
      1. cjmagowan's Avatar
        cjmagowan -
        i.strictly implement pud unta nang no smoking sa mga public places para ubos2x gamay ato ma.hinggop nga aso ka gawas.

        talagsa nlng sa dsgrasya kng mao man gani mahitabo ani nga bill. dba kasagaran aksidentes kadalanan ky 2ngod hubog man? ug wa na pud au kisaw ug mga away sa mga tambay ky instead magtagay... tua nag tapok manan.aw nlng telenovela.
      1. Code Talker's Avatar
        Code Talker -
        nag sugod na ko ug tanom ug lomboy ug lubi sa akong tugkaran. maglukot lomboy ug tagay lambanog/tuba/etc na lang ta ani. wla pay tax.
        I wonder if ang sari2x store nga ga baligya ug tuba mo omento ba sad ang presyo?
      1. nikkobum's Avatar
        nikkobum -
        this bill has its pros n cons... i juz hope that the taxes they get out of this will b used properly, dili ma bulsa! i condemn and curse politicians who will benefit from this.
      1. jhunric's Avatar
        jhunric -
        mayta ila ge lower ang income tax para ma balance. atleast maka generate sila more revenue from this but lower the burden sa mga parehas nato nga nanarbaho.
      1. emberjim's Avatar
        emberjim -
        A good help unta para maka hunong na ang mga smokers ug drinkers specially ang mga bata pa tawon na na link na sa ani na bisyo tungod sa kabarato ug accessible ra kaau na ilimnon ug sigarilyo... ang ako lang wa ganahi ani kay affordable ra ghapon kaau, wala man jud ni sya matabang na bisyo ug ang gadatu lang ani ang mga manufacturer ani mga silent killer products, never ang mga farmers ani na mao unta ang una nga maka-benefit. Sakto ra ang sin tax law but a little longer unta nag bangkil para sakit sakit sad ba, to both consumer and manufacturer. and see kung asa aning duha ang mangundang...LOL

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