If the company is local, they would not pay the income tax. 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.
This proportional tax would be a regressive tax that will surely affect the poor more and become a burden tax to them. It means higher productivity, employment, growth and so on.
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. According to the New York Times, "economists doubt that sin taxes greatly affect the behavior of most Americans.
In Europe there is a VAT consumption tax which is a value added tax added to goods and services. Thus in real terms, it does not have to decrease revenue, especially since our culture is one of consumption and bad habits are not easily gotten rid of.
Certain states like California are considering legalizing marijuana as a way to bring in more sin tax revenue. Sin taxes have several potential advantages and disadvantages. In review The sin tax bill was passed as a means to improve the health of Filipinos by increasing the prices of liquor and cigarettes.
The same number, however, also said that their cigarette intake has not changed. Abil also confirms that they still have other sources of income. The bill is founded on the idea that higher prices would discourage people from buying and consuming more alcohol and tobacco products. Not that affected On the other hand, other stalls near the campus argue that the bill has not affected their sales.
In an informal survey conducted by The LaSallian, 10 percent of the population has stopped smoking while 36 percent said that they started to purchase fewer cigarettes since the implementation of the bill.
Other activities with known negative health effects that are taxed include drinking alcohol and using tanning beds. Increasing Tax Revenue Another benefit of sin taxes is that they can provide additional tax revenue to the government bodies that impose them.
Moldova Post 2 MarsI agree that the consumption tax trends would actually create more revenue for the federal government because the United States is a consumption based society. 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.
According to the bill, revenue from the tax would be allocated to farmers and the Department of Health DOH programs. This can hurt businesses that rely on the sale of products like alcohol and tobacco.
It would take some time to getting used to but I think most people would like it. She argues that her stall sells cigarettes at a lower price in comparison to the prices of cigarettes in other stalls or stores.
Joann Ramirez, a cigarette vendor at Agno, narrates that although customers continue to buy cigarettes, the prices have started to affect their consumption.
He claims that a small number of customers have started buying less. The Sin Tax Law has been in effect since January 1, with many cigarette vendors already abiding by it. Ramirez explains that in some cases, customers opt to leave their supposed cent change to aid the vendors.
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. Also, there would be no escape to these taxes as you pay as you consume which is fair.
Imposing high taxes on cigarettes reduces the amount of tobacco consumers can afford, which may in turn reduce the overall negative health impacts of smoking. 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.Increasing Tax Revenue.
Another benefit of sin taxes is that they can provide additional tax revenue to the government bodies that impose them. According to the New York Times, 22 states increased their tobacco taxes between January and April to bring in more tax revenue.
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.
'Sin Tax' Costs Outweigh Benefits. Lobbying against sin taxes is socially wasteful, and the burden of the taxes falls most heavily on the poor. 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. The recent implementation of Republic Act No.also known as the sin tax reform bill which increases taxes on alcohol and cigarettes, has started affecting users as well as vendors.
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.Download