PREVIOUS sin taxes and other forms of policy interventions did little to practically nothing to diminish the smoking – and drinking – prevalence that has prevailed through decades. The current Sin Tax Law, while higher than in previous decades, appears ineffective in eradicating the vices, even among the poor.
Now, there is a move to change all these – impose even higher six taxes. Good. We are reminded of the ideas advocated by renowned experts on health and tobacco control such as Frank J. Chaloupka, economics professor at the University of Illinois in Chicago.
In a 2012 study which Chaloupka co-authored with experts from the University of the Philippines, the Department of Health and the University of Illinois in Chicago, he and his colleagues stated that levying higher excise tax per pack would reduce cigarette consumption and raise billions in revenues. The study further cited a reduction of 3.82 million premature deaths from smoking or 26 percent of premature deaths averted.
New proposals to increase sin taxes could potentially hit two birds with one stone – increased revenue and more importantly, better health. These could prevent millions of youth from picking up the smoking and drinking habit and avert premature deaths.
Smoking prevalence in lower income households could also decrease dramatically and funds normally spent on tobacco products would be otherwise spent on other necessities.
The bottom line is that smoking is costly. It is harmful to health. In fact, it kills. And it is costly not only to the patients and their families but to the government, too. According to the Department of Health, cost for treating leading smoking-related diseases has reached P188 billion each year.
If we do not do anything to reduce the number of smokers and discourage our youth from taking up this deadly habit, we will see smoking-related diseases like lung cancer becoming an epidemic. Sin tax reform can help address this.
