How is the sin tax affecting you?
The revised excise tax on cigarettes and liquor started implementation Jan. 1 and so far this week there has been minimal effects on smokers and vendors. Most sidewalk vendors started hoarding stock prior to the New Year in anticipation of the higher prices.
Smokers on the other hand have also taken a look at alternatives to the more expensive brands, as some have shifted to cheaper local cigarettes. Others have started smoking e-cigarettes, which are not affected by the sin tax law.
According to Inquirer News, the new excise taxes replaces the four-tier taxation with a simpler two-tier tax bracket. Cheap cigarettes priced at P11.50 or less per pack have an excise tax of P12. This will increase to P17 in 2014, P21 in 2015 and P25 in 2016. The higher tax bracket will be taxed P25 per pack, climbing to P27 in 2014, P28 in 2015 and P29 in 2016. On 2017 all cigarette brands will have a uniform tax of P30 per pack.
