Sin Taxes Proven Effective in Philippines
June 16, 2015 Taxation in Philippines
MANILA – The collection of sin taxes in the Philippines have more than doubled since 2012, while the number of cigarettes smoked in the same time frame dropped by a third.
On June 15th the Bureau of Internal Revenue of the Philippines announced that the concentrated efforts to reduce smoking in the country have had a significant positive effect, due, in part, to sin taxes.
Over the years between the start of 2012 and the end of 2014 the number of cigarette packets put up for sale by retailers in the country fell by approximately one third.
In 2012 an estimated 5.764 billion packets of cigarettes were put up for sale, while in 2013 the amount fell to 4.869 billion, and in 2014 the level became 3.917 million.
The sin taxes levied upon the sale of cigarettes led to the collection of PHP 32.16 billion in 2012, a level which rose to PHP 74.328 in 2014.
In the Philippines a large portion of the adult population are believed to be regular, with a survey conducted in 2009 showing that as many as 29 percent of people above the ages of 18 identifying themselves as smokers.
Photo By: Matt Trostle