Moreover, he adds that the government should consider giving those affected alternative employment and business opportunities.
Despite the price hike, a number of students believe that cigarettes are still affordable, while some argue that they have started to reallocate and re-evaluate their spending. On handling business Several vendors and proprietors selling cigarettes claim that their sales have been low ever since the implementation of the sin tax bill.
Ramirez explains that in some cases, customers opt to leave their supposed cent change to aid the vendors. According to Reuters, "the U. While the implementation of the tax has received much support from the public, many have expressed concern over the spending plans of the government.
Ramirez explains that because of this system, they do not go out of business. The consumption tax vs. He claims that a small number of customers have started buying less. The two most common examples of products that face sin taxes are tobacco and alcohol.
For instance, tobacco use is associated with various health problems such as cancer and heart disease. It would take some time to getting used to but I think most people would like it. The bill is founded on the idea that higher prices would discourage people from buying and consuming more alcohol and tobacco products.
Also, foreigners would actually be paying our taxes as well so the burden would not be so high on the American family because these sales tax rates would be higher. Ronnie Ramos, a vendor at a stall near the Enrique Razon Sports Complex adds that they have not gone out of business despite the prices increase.
She also adds that the prices have changed little, and explains that her store only increased the price of Marlboro Black, a cigarette brand, from three pesos to four pesos. Increasing Tax Revenue Another benefit of sin taxes is that they can provide additional tax revenue to the government bodies that impose them.
This is really the only way to even out the playing field with respect to taxes because only those that consume certain things would pay taxes. Effectiveness While discouraging harmful behavior is often cited as one of the aims of sin taxes, it is dubious whether sin taxes are actually effective at discouraging harmful behavior.
Also, there would be no escape to these taxes as you pay as you consume which is fair. It is also a relatively neutral tax. Foreign companies that must pay income taxes would also see taxes on their goods sold here.
Sin taxes have several potential advantages and disadvantages. Even more important you should consider that it is impossible to change the education and mentality of generations regarding consumption. In Europe there is a VAT consumption tax which is a value added tax added to goods and services.
Other activities with known negative health effects that are taxed include drinking alcohol and using tanning beds. The same number, however, also said that their cigarette intake has not changed.
I think that the progressive tax unfairly punishes small business owners and stifles creativity among entrepreneurs because it causes a higher tax burden to these people. Certain states like California are considering legalizing marijuana as a way to bring in more sin tax revenue.
Not that affected On the other hand, other stalls near the campus argue that the bill has not affected their sales. Critics say that the consumption tax causes an undue burden on the poor because they lack the disposable income that middle class or wealthier class of people has. Because of the price increase, customers resort to buying per stick instead of cigarettes per pack, even if the price of the former has increased from P2 to P3.
Donna Sandigio, a vendor at Sherwood, claims that her sales have not changed, as customers a day still purchase from her stall.With tobaccos and cigarettes being the major cause of lung cancer death s in the Philippines, advocates are pushing to pass the Sin Tax Bill.
Sin tax bill is the tax levied on any products that are notorious to be harmful like cigarettes, alcohol and even activities like gambling. Earmarking Revenues for Health: A Finance Perspective on the Philippine Sintax Reform Sin Tax Law (RA ) Bi-annual tax increases ( – ) Sin Tax Law (RA ) Framing Sintax Law as a health measure than a revenue measure paved way for significant tax.
The Service Tax in India is now 15% but the proposed GST is about %. so all the services will be Costlier and this one of the Disadvantages of GST Bill on Common Person. 4. There are some retail products where the Tax rate is only 4 % but with GST it will be costlier like Garments and cloths.
a result, unlike a general sales tax, a sin tax does not vary in response to economic changes such as inflation. Thus, even if consumption of a product upon which a sin tax has been levied remains.
Disadvantages Of Sin Tax Bill To Vendors. I. What is Sin Tax Bill?A sin tax is a kind of sumptuary tax: a tax specifically levied on certain generally socially proscribed goods and services, for example alcohol, tobacco and gambling. Sumptuary taxes are ostensibly used for reducing transactions involving something that society considers undesirable, and is thus a kind of sumptuary law.
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