Pushing for more Sin Tax Law gains

As a health advocate, particularly one who is supportive of anti-smoking habits especially among our youth and those who can least afford to be burdened by associated illnesses from excessive smoking and second-hand smoke from cigars and cigarettes, I was pleasantly surprised to receive a rather lengthy letter from the Action for Economic Reforms (AER).

The AER had been actively promoting the reform of the old Sin Tax Law into the current one made effective in 2013 that not only raised the taxes on “sin” products such as tobacco and alcohol, but also continued to campaign for a reduction in smoking and drinking among Filipinos.

One of AER’s strengths is its access to data on the smoking and drinking habits of our countrymen, a mark of character that has made the organization an effective lobby group during the days when the Sin Tax Law was being deliberated in Congress. And this will also come in handy in the crafting of future laws that aim to protect the health of the nation.

In contrast, my research data comes largely from readings and observations, and thus, AER’s letter that offers access to its researches in aid of continuing my writing about this topic, is most welcome.

AER’s letter contains a number of interesting information that is worth sharing with readers. Here’s part of the letter that was sent to me, signed by Filomeno S. Sta. Ana III who introduces himself as AER’s coordinator. Please read on.

Offer of support

“Your consistent public support for the Sin Tax Law and many other reforms towards the betterment of Filipinos’ health gladdens us. The Sin Tax Law was a milestone – a step towards reduction of smoking and excessive drinking prevalence, and at the same time financing universal health care.

“Despite many emerging threats that undermine the sin tax reform, you hope for the best outcomes, and we admire you for that. Thus, in relation to your article titled “Fine-tuning the Sin Tax Law” published last October 9, 2014 in the Philippine Star, we wish to offer support to your own writing on the health impacts of the reform.

More positive signs

“Through the results of various surveys and assessments, we’ve seen positive signs that the country is on track towards achieving the goals of protecting the health of Filipinos through reduction of smoking consumption and prevalence, especially of the poor and the young smokers.

1) National Nutrition and Health Survey 2013

2) Social Weather Stations (SWS) Smoking Survey 2014

3) Rapid Assessment Surveys we conducted in Cotabato City, and Angono Rizal, in 2013, and

4) Focus Group Discussions (FGDs) were conducted this 2014 among various sectors of smokers (out-of-school youth, students, urban poor, working class, etc.)

Historic first

“From the results of the National and Health Nutrition Survey 2013, we’ve seen smoking prevalence going down for the first time in our history below 30 percent to 25 percent.

“According to the analysis of Dr. Antonio Dans of the Philippine Society of General Internal Medicine, the Sin Tax mostly led to people not starting to smoke at all, which is what we want. He also validated that the most price-sensitive are the young and the poor smokers.

“There was a 25 percent drop in smoker prevalence among smokers aged 10 to 19 years old, and the poorest sector of smokers also had a huge drop in prevalence.

“A DOH-commissioned 2014 Social Weather Stations (SWS) survey on smoking has revealed lower smoking prevalence among Filipinos – from 29 percent in 2012 to 26 percent in the first quarter of 2014.

“Significantly, SWS’s findings confirm that the young and the poor smokers are sensitive to price increases. The drop in the portion of the youth who currently smoke is dramatic: from 35 percent in 2012 to 18 percent in the first quarter of 2014. Similarly, the smoking prevalence among the poorest of the poor dropped from 38 percent to 25 percent in 2014.

Impact of price increase

“The rapid assessments conducted in Cotabato City and Angono Rizal reveals a drop in cigarette consumption, across all age, civil statuses, and gender after the first wave of price increase.

“With a 55- to 75-percent increase in the per-stick price of cigarettes faced by smokers, the drop in weekly cigarette consumption averaged to 11 to 23 sticks, and the percentage of smokers who quit was two to eight percent of the sample.

“On the impact on youth smoking, both the Angono and Cotabato surveys reveal that the increase of around 50 percent in the price faced by young smokers led to a reduction of two to three sticks in their daily consumption, or about one pack a week.

“The focus group discussion also validated the concluded change in consumption, and provides insights about other behaviors distinct to each smoker sector.

“We also note that although the 1.47 billion packs sold in 2014 is higher than the 1.43 billion packs in 2013, it is still much lower – almost half of the 2.5 billion packs sold during the same period in 2012 before the passage of the Sin Tax Law.

Prevent policy reversal

“This, together with the results of the surveys previously mentioned, is proof that the law is working its way towards its objectives on reducing consumption.

“While the government implements strategies to respond to tax compliance and other technical issues to improve the Sin Tax Law implementation, we believe we can help prevent policy reversal by educating the public on the law’s health impacts and on the importance of advancing Sin Tax reforms in general.

“Once the Sin Tax Law matures, the country will need a new round of tax rate increases to further address its health objectives.”

SWU Cobras top southern islands collegiate team

 Southwestern University Cobras are once again the top southern islands collegiate team. The Cobras defeated the University of San Carlos Warriors in a bruising five-game series to capture both the CESAFI-Cebu and the PCCL Over-All Southern Islands titles.

SWU and USC are both in the Elite Eight stage of the Champions League (PCCL) 2014 National Collegiate Championship together with UAAP champion NU Bulldogs, UAAP runner-up FEU Tamaraws, NCAA finalists San Beda Red Lions and Arellano Chiefs, and the winner of Vis-Min Qualifying games, University of Visayas Green Lancers.

Visit www.CollegiateChampionsLeague.com and join for free the ongoing survey to pick the teams that will advance to the Sweet 16 Finals from the regional championships and qualifying games. Those who will pick correctly the teams will receive gifts from Champions League (PCCL) sponsors. 

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.