Vantage Point

Two days ago the Congress’ bicameral committee has approved the final version of the new tax measures on cigarettes & liquors. The government wants to raise revenue collection in lieu of the ballooning budget deficit.

Fine, without the much needed money, basic services won’t be available to the people. I will not argue if the money is being spent wisely or not, what I am so concern about is the new taxes that will be laid on the shoulders of Juan dela Cruz.

I really don’t know how much (in terms of percentage) is being paid by a smoker on each packet of cigarette that he smokes. But if I could remember right, the last time that the Sin Taxes was approved, it was at 35% that was during the reign of President Ramos.

Few years later, the government lost the battle against Lucion Tan (a cigarette & Liquor Tycoon) on a multi-million tax evasion case. It is not just the case that was lost, it was the much need money for public service that was put to drain.

Now that the new taxes will be implemented soon, nobody is happier than Mr. Tan, he can freely raise the price of his products and leave the litigation to his army of lawyer. I know he can get away with any tax evasion case that will be charged against him.

Now tell me who will benefit from this new taxes?

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