Sintax Bill Essay

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Table of Contents I. Introduction There is no such market that exists without some form of government control. Usually this control extends to ensuring that no individual business or corporation gets an unfair advantage over their competition and promoting economic equality, but the fact remains that the government controls our economy. This is usually done through various laws and bills. An example would be the anti-trust laws of our own government, which are supposed to prevent monopolies and increase the efficiency of our economy. One such tool through which the government controls the economy is the sin tax. The sin tax is a tax commonly levied on goods whose use is generally frowned upon by the society. These goods commonly include tobacco and alcohol, such as in the case of the Philippines, but can be extended to junk food, coffee, fat foods, and services such as prostitution and gambling. This would affect the economy through supply and demand. A higher tax would increase the prices of the products it is levied upon, and the rise in prices would in turn reduce demand for the product. The purpose of this paper is to determine exactly how sin tax in the Philippines would achieve this effect, and whether its current manner of implementation is effective or not. B. Statement of the problem 1. Farmers have enough reason to disagree in the signing of this bill because of the effects once it is being signed. We might also think of the same way as what these farmers are anticipating. If this bill is being signed, there would be an increase in the price of cigarettes and liquor thus, there would be a decrease of buyers and the income of the tobacco industry will also decrease. Buyers might be discouraged to buy these “sin products” because of its high price. But these anticipations are

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