Ekonomista ako!
Explain how the concept of price elasticity is related to the impact of tobacco taxes to government revenues and smoking prevalence
Elastic Groups: Poor and Youth (lowers smoking prevalence)
Inelastic Groups: Rich and Addicted (increases revenue)
After TRAIN Law was passed, what law approved by Duterte gave another opportunity to push for another Tobacco Tax Law that was exploited by the Sin Tax Coalition?
Universal Health Care Law
What was the name of the agency in conflict with DOH because of its mandate to promote tobacco in the Philippines?
National Tobacco Administration (NTA)
Explain the issue with having a Multi-Tiered Tobacco Tax System
It allows tax avoidance
How did government treat tobacco prior to the signing of the WHO Framework Convention on Tobacco Control?
Explain how this statement is not believable for an economist: Prior to the Sin Tax Law of 2012, smoking prevalence is at 30%. After the Sin Tax Law was passed, it went down to 25%. Therefore, the Sin Tax Law was effective. What will make this statement believable?
Regression (DLSU study) to hold other factors constant
Which among the reforms under the Sin Tax Law follows the Sustainability criteria in selecting reforms in DE
Automatic Annual Increases
Explain the problem with HB 4144 which was passed towards the tail-end of Aquino's presidency
It will retain the two-tiered system
What part of the Sin Tax Reform addresses the issue of inflation in relation to the price of tobacco?
Automatic Annual Increase
Explain the communication strategy of the Sin Tax Coalition before AND during the Aquino Administration
Before: Let's solve the fiscal crisis
During: Let's fight for health
What macroeconomic concept explains why there is a need for the automatic annual increases in Sin Tax? Explain how the concept is relevant.
Inflation: It erodes the power of the tax to stop consumption of tobacco.
State one instance heard from class where the Sin Tax Coalition applied Grit
Who was the clincher vote in the ratification of the Sin Tax Law in the senate?
Sen. Lito Lapid
Explain how the Price Classification Freeze affects the entry of new competition in the tobacco industry
It prevents new competition because they are taxed higher than existing "legacy brands"
State the four Tobacco Tax related laws passed in the last two decades in order of passage
Sin Tax Law of 2012, TRAIN Law, Tobacco Tax Law of 2019, E-cig/Vape Tax Law of 2020
What is the impact of the tobacco tax on health aside from the lower smoking prevalence?
More budget for PhilHealth which increases the subsidized indigent families
Why wasn't alcohol taxed as high as tobacco in the Sin Tax Law of 2012?
Coalition had to choose its battles
Who was the competitor of Philipp Morris that would benefit from the increase in the tobacco tax during the Aquino Administration because they cannot enter the market with the very low taxes
Japan Tobacco International (JTI)
What was done as part of the Sin Tax Law to address the concern of tobacco farmers?
Allotted an earmarking of 15% of the revenues for the tobacco farmers
What can we learn from the history of tobacco that is happening once again with vape at present?
No global consensus about its harms so it's marketed heavily especially among the youth
Aside from the cost of hospitalization of a smoker, what else can be included in the economic cost of smoking?
Cost of Hospitalization of Second-Hand Smoke Victims (Externality) or Forgone Income from death/illness
Does the Sin Tax Law of 2012 satisfy Scale as a criteria for selecting reforms? How?
Yes. It's a national law.
Explain the reason behind DOF's initial refusal to include Tobacco Tax in TRAIN
They want to spend the political capital of the president on other tax measures that didn't have major developments in the past years unlike Tobacco Tax
By how much did the tax on tobacco increase as part of the TRAIN Law?
5 pesos
State the current issue with Tobacco tax during the present-day admin
Bill to rollback the tax rate on tobacco