"Today, we sign, finally, a law that serves as an early Christmas gift to millions of Filipinos who will be covered by the universal health care program, who will benefit from new public clinics and hospitals that will be built, and who will be discouraged from smoking and drinking,"
- President Benigno Aqiono III
News
The long years that the Filipino who supported the Sin Tax Bill has been a fruitful Christmas gift for them. It started on 1997 and for almost 16 years of struggle and waiting, the law has been signed On Thursday, December 20, 2012.
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The law aims to impose higher taxes on the "sin" products, overcoming the industry that kept these products in the Philippines as one of the cheapest in the world.
It will generate additional revenues of roughly P34 billion in the first year of implementation that will be spent for the universal health care program and tobacco farmers' livelihood.
Aquino also thanked the lawmakers and advocates who helped the law to be passed when it was still a House Bill.
"Many believed it was impossible to pass the sin tax bill. Those who are opposing it are strong, noisy, organized, and they have deep pockets. But we have proven: nothing is impossible for Filipinos who are sailing in the same direction, whose hearts are in the right place, and who are ready to fight for their principles," he said on his speech.
The fight for the reformed law was hard and full of heated debates not only in the senate but in different parts of the country. There are also controversies that sprout much faster than the signing of the bill that results from the different resignation of different individuals involved on the process.
At the bicameral conference committee, where the House and Senate reconciled their versions, debates centered on the burden-sharing between tobacco and alcohol in generating the additional revenues and whether the government can make good on its promise to spend the funds as planned.
The reconciled version approved by both chambers of Congress seeks to generate the following amounts:
2013 – P33.96 billion
2014 – P42.86 billion
2015 – P50.63 billion
2016 – P56.86 billion
2017 – P64.18 billion
The burden-sharing between tobacco and alcohol is as follows:
2013 – 69%-31% (ratio of tobacco to alcohol)
2015 – 66%-34%
2016 – 65%-35%
2017 – 64%-36%
Though some senators said that the bill will be biased against tobacco. Though it was solved peacefully during the bicameral conference last December 10, 2012.
President Aquino also gave assurance that the law will provide "a level playing field" for industry players. "It's not fair that different taxes are applied on the same products," he stressed.
Players in this reformed economy will not a be a loser but a winner given the time to make an impact and the necessary adjustment and final touch are fixed.
Thoughts
I personally don't have any problems with the Sin Tax Bill made into a law. It is a strong measure needed to shake some people off smokes and booze. One thing I am distrustful of, though, is where the money collected will go, will it really be for health care or to the corrupts' pockets? That thing is one to be looked out by the present administration. They should make sure to monitor very closely when and where the money will be brought.
Think it over, there are pros and cons on everything. The good thing for now is that we can focus more and giving good health service to the people who really needs the service and to make some people stop complaining about a certain problem in the health care program of the Philippines.
The bad side is that, at first, economy on the sin products, since it is one of the highest demand on the country, will falter in the first few years of the implementation. The people will also fear and wonder that if the government will not take the money allotted for the people's healthcare into their personal use.
In the end, the very intention of the government (I hope) that they would really care for the very healthcare of the citizen of the country. A very noble intention shall we say, but let us see whether they really are noble or is just making a name for the upcoming 2013 election. :D
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