Experts on health and economics from the University of the Philippines (UP) on Tuesday debunked statements allegedly being spread by the tobacco industry to undermine the sin tax reform bill on alcohol and tobacco products now pending at the Senate.
Prof. Winnie Monsod, of the UP School of Economics, has rejected claims that the government would lose money with the passage of the bill and even with the perceived death of the industry.
“All the studies – without question – show that because of the inelasticity of demand that when you raise the price, total revenue will go up because there are addicted consumers. It’s as simple as that,†Monsod said.
During a health forum Tuesday at the Annabel's Restaurant in Quezon City, Monsod clarified instead that with the proposed higher excise taxes, “revenues are going to increase."
"In no country in the world with even greater excise tax has there been revenue decrease. I’m disturbed by the irresponsible statements that were made and nobody ever demanded a simulation or study on how it occurred,†Monsod said.
Monsod also debunked claims that
increasing the sin taxes would only intensify smuggling in the country.
“There is no relationship between price and illicit trade. Smuggling is an enforcement issue. If we use that same argument, then we should have no elections dahil nagdadayaan naman eh,†she said.
Monson also questioned the figures presented by the tobacco industry during the second Senate hearing. The industry claimed a number of 840,146 employed in tobacco farming with a total land area of 32,235 hectares.
“If we divided the 840,000 with the 32,000 hectares, that means there are 26 farmers per hectare. Doesn’t that sound ridiculous to you?,†she said.
She also disputed the figures on the farmers’ income. “If we assume the 85,000 annual income per hectare and divide it by 26, that means the average annual income is 3,269.23 pesos. How can anybody survive with 3,200 pesos a year?â€
Monsod added that claims the Philippine economy benefits some P103.8 billion from the tobacco industry, is being greatly overshadowed by its huge economic costs -- modestly estimated at around P188 billion, covering healthcare, foregone income from sickness including premature deaths due to smoking-related illnesses.
On the other hand, Dr. Tony Dans of the UP-College of Medicine, emphasized that smoking greatly increases the risk of 50 diseases, including cancer, stroke, and heart disease.
He also debunked the claim that lifestyle is a choice.
“People say that because it’s a choice, we should just educate them on the health risks,†he said.
But Dans said that we have to change the environment to lower tobacco consumption. - Phil News Agency, source
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