Sin Tax Essay

I. Intro

The excise tax is commonly included in the price of the products such as superfluous or unnecessary goods and services to raise taxes and reduce the amount they are being used. These taxes are inland taxes on specific goods on the “sale or production sale”. Sin tax being a form of excise tax focuses on levying duties from ‘sin’ goods and services. This tax being implemented in different countries, differ in the allocation of sin tax of the particular products. The products being sin taxed are goods such as alcohol, cigarettes and activities such as gambling. The outcome of these taxes on the economy of the country is greatly reflected and pursue promising effects on financing the health care and raise higher revenues for the government platforms.

II. Body

The history of the implementation of sin tax in the Philippines dates as far back as before 1986. The Sin Tax Law implemented in 2005 have mandated various rates of increase on the products.

“In addition, epidemiological studies have found that exposure to environmental tobacco smoke in the childhood was associated with increased risk of pancreatic cancer; this suggests that tobacco smoke might have a chronic toxic effect to the pancreas (Wang et. al., 2013).” The awareness on these non-communicable diseases related to the products of sin tax are important due to the obvious implications of these products to the consumers.

The allocation of sin tax in different countries vary greatly. In these countries, the sin taxes being levied have distinct similarities in terms of purpose, use, and function. Mainly being for health care, the focus being emphasized by the allocation of sin tax from the sin tax rather than from the personal or corporate taxes is a better alternative for raising