Sin Taxes needs to be raised for the purpose of imposing discipline on the Filipino citizenry. So says the Philippine President.
From the Inquirer.net
But in reality, prohibitions whether direct or indirect hardly ever achieves its declared goals. Simply look at the local war on drugs, where the Philippines despite the numerous drug laws have acquired the ranking of the 4th largest supplier in Asia. So we seem to be seeing a reverse phenomenon where more regulations have equaled greater drug problems. (I can't link to my old posts because my dsl is down and I'm operating from an internet cafe).
The same should apply to smoking bans or sin taxes. Economics always trumps politics.
However the real goal of Sin Taxes can be gleaned from the same article.
Equivocation aside, the real intent, like all governments, is to raise money for political ends.
And governments operating on the welfare platform eventually end up bankrupt, as the problems of Greece and even the US has been revealing.
Apparently, politicians love to spend while ignoring long term consequences of their current actions, and at worst, never ever seem to learn from lessons of the past or of the present.
From the Inquirer.net
We proposed all of these measures because we really believe that they are needed to run this country better. I’m sure that in the conscientious fulfillment of their duties and obligations, they will expedite the passage of measures that they already agree with,” President Aquino said. “With the sin taxes, there’s no question about our ultimate aim, to decrease the consumption of sin products.”Such moral statements are wonderful to hear. It seems to have a cathartic effect, especially to the gullible.
But in reality, prohibitions whether direct or indirect hardly ever achieves its declared goals. Simply look at the local war on drugs, where the Philippines despite the numerous drug laws have acquired the ranking of the 4th largest supplier in Asia. So we seem to be seeing a reverse phenomenon where more regulations have equaled greater drug problems. (I can't link to my old posts because my dsl is down and I'm operating from an internet cafe).
The same should apply to smoking bans or sin taxes. Economics always trumps politics.
However the real goal of Sin Taxes can be gleaned from the same article.
The government aims to generate P60 billion from a proposed bill restructuring the excise tax on alcohol and tobacco products.So like all paternalistic- nanny states, who pretend to know best for the society, the means will always be used to justify a questionable unattainable moral end.
President Aquino said the revenues from the modified excise tax would be earmarked for universal healthcare.
Equivocation aside, the real intent, like all governments, is to raise money for political ends.
And governments operating on the welfare platform eventually end up bankrupt, as the problems of Greece and even the US has been revealing.
Apparently, politicians love to spend while ignoring long term consequences of their current actions, and at worst, never ever seem to learn from lessons of the past or of the present.
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