Tuesday, December 31, 2013

Celebrating the First SIN TAX Bill Anniversary: Another year, Another Chance for the Government to Bully Smokers

 To My Beloved Government,

I have a few hours to kill until I wave farewell to 2013, and here I am smoking my last cigarette for the year. Welcoming the New Year has always been a blast for me, but now it has to come with so much anguish as it is now no longer just goodbyes to the year departing, but also a farewell to my hard earned cash. It’s the second New Year’s Eve that I am feeling this twinge of regret for once again failing to stock up by going on a cigarette hoard spree before the due price hike. Nevertheless, the bitterness in this letter is rooted from reasons beyond my starving wallet’s inability to provide for my nicotine desires. I am writing you this letter in behalf of all the affected consumers who have been bullied by your money-grabbing scumbag policy.  

I will not even bring up how you stepped on our right to choose our own lifestyle. That argument is crass and I have no qualms with that at all. Smoking has always been a problem with rising urgency, yielding countless detriments to both smokers and non-smokers--and it is your job as government to minimize this incident as much as possible. This isn’t even a point of dispute, as I find this completely right and acceptable. But that is still beside the point. I still have so much to say. As ideal as your framework appears, there are still million reasons why your plan just doesn’t work.

First of all, thank you for masking your money making desires through the façade of ratifying a law with principal urgency, which are, in accordance to your bill: to be able to look out for the health of these consumers by discouraging them from purchasing these “sin” products, and to garner more funds needed to cater to our country’s developing needs--which your fictional Daang Matuwid platform labels as “ key development areas.” Indeed, there is nothing wrong with trying to achieve both goals. I just can’t help but wonder, how do you expect us to believe that this extra amount we spend for our vices really do contribute to the development of these areas? With countless tax thieving issues emerging left and right (With Napoles’ famous Pork Barrel Scam as only one of the many) how are we to see the earnestness behind the goal points of your Sin Tax policy implementation?

There have been multiple times when I have witnessed the front page of our papers lamenting over the missing revenue garnered from the SINTAX bill. For some reason, I can’t seem to find any of these articles online. I’m not accusing anyone of manipulating media, but I am sure that I saw what I saw—and what I saw, I saw more than once. Thank you for using our vice as another excuse to extort citizens. There is a proper place and time to levy taxes, and that is only when the extra revenue would truly end up in key development areas, as oppose to landing in the obese pockets of our very sympathetic politicians. If you would tell me that our nation’s wellbeing always remained at the core of this policy, and that vast corruption was just another inevitable side effect in this means towards a healthier end, then I’m sorry but you are a terrible government. And if you are terrible as a government, you have no right to milk out the opportunity of having a vice-inclined populace by taxing them heavily for it.

 I am very tired of all these seemingly sincere and flawless frameworks that offer endless loopholes for government officials. When opportunities for taxation and extortion arise, the government is omnipresent. All Pacquiao needed to do was opt against joining the administration’s party, and presto, another impetus for you guys to tax him a hefty amount of 2 Billion (which is, take note, almost greater than what he earns per fight. Regardless of all his sponsorships, how again could that great amount make up his taxes? If I am not mistaken, income tax only comprises more or less 30% of total earnings. The moment citizens noticed how questionable 30 Billion is, BIR presented their facts, admitting that 50% of the amount was purely supplement collections disguised as due interest. Wonderful.) But then again, I digress. Back to my point: When opportunity for revenue arises, government is ubiquitous, but during the times that really matter (case in point: Yolanda, and a million more) our beloved government suddenly goes missing.

Since we have brought up Yolanda, it is about time we point out how your bill’s credibility vastly decreased after this massive tragedy. I find the feasibility of your statement declaring that “the funds garnered from the levied taxes would likewise be used to bolster our national healthcare” to be very questionable, seeing how you cannot even manage to provide for your affected areas. How much donations, both cash and in kind, did you squander while your citizens from Tacloban starved and died? Let’s stop the fooling. I know you have enough funds to at least make better the situation. But if during a very urgent tragedy, you cannot even provide ample health services, how do you expect us to believe that PhilHealth and all your crass health care plans will be bolstered by Sin Tax? Insofar as your officials will continue to pocket a massive chunk of the national budget, no amount of taxation would ever alleviate our poor country’s condition.

We haven’t quit at all.
I think I have smuggling to thank for that.

It’s been pretty clear how this policy has done nothing more than lower the sales of the higher bracket cigarettes. It doesn’t take a genius to figure out that cigarettes are inelastic needs, at least for those of us whose wellbeing are really on the line. In the same light, most market actors are wise enough to maneuver their way around your policy. All we need to do is to acquaint our taste to a downgraded brand, and we are good to go. Even the poorest of smokers have yet to quit, or even decrease at all. As of the inception of this bill, cheaper and cheaper cigarettes have flooded our market. Smuggled cigarettes (costing about P1.00/stick) have been patronized instead. And you do know that when we spend less, we tend to smoke more? Right?
                                                 
Whereas I am very certain that a lot of you would question my knowledge and opinions regarding this matter, as I would not know more than a nineteen year old who has invested several months following whatever is released regarding the bill, please please please do not shun my opinions. I believe my thoughts matter, as I have only garnered what I know from public documents and the press and media statements made available. My thoughts, therefore, represent what most of the affected consumers believe, based on the raw information you have left us to process.

Now that I have said my piece, I will now spend what’s left of this year to hoard whatever sari-sari store remains open at this time.

Have a Happy New Year and enjoy smoking all the expensive tobaccos that only you could afford!

With love,
B