A crucial part of governance, normally overlooked, is the tax system.

“Overlooked

because it’s narrowly viewed merely as a revenue-generating machine. So long as the

government is getting money, then the tax system is generally left alone. Which is

wrong; the tax system, like the budget or any part is of our governmental architecture,

plays a significant role in defining our society. The tax reform package currently being

pushed by the government (Tax Reform for Acceleration and Inclusion Law) represents

a great opportunity layout, craft, and implement a vision of what Philippine society could

be. (Gatdula, 2018)

Abrea Consulting Group President Raymond A. Abrea, said that taxes go to the state

coffers to enable the government to fund infrastructure and social services to improve

the quality of life felt by Filipinos with the bulk of the tax being used for to pay for the

salaries of government employees. According to the Tax Management Association of

the Philippines (TMAP), tax collections were spent on sectors such as education, health

and nutrition, social security and welfare, employment facilitation, housing, roads, and

transportation, agriculture, power and energy, defense, public security and safety and

public services. (Cu, 2018); Cu, Rea (2017, November 26). Business Mirror. “Despite

‘complex’ regulation, PHL tax system seen effective”. p.A1

A call for higher taxes on cigarettes will resonate with health advocacies like Sin Tax

Coalition, which is proposing a 60% increase in excise taxes on tobacco products by

2018, and an annual hike of nine percent for the succeeding years. The coalition brings

together about 100 health care professionals’ associations and civil-society entities

supportive of higher taxes on sin products like cigarettes. N.A (2017, August 31).

Business World. “What should we tax next?” p.6/S1

The approved tobacco excise tax in the first package of TRAIN has increased the rate

by P5 or 17% in 2018 (2.50 in the first half and another P2.50 in the second half),

followed by a series of lower rate increases until 2024. After this period, the annual 4%

increase mandated by RA 10351 becomes operational again. (Mercado, 2018);

Mercado, Arjay (2018, February 26). Business World. “OPPORTUNITIES FROM THE

TOBACCO TAX INCLUSION IN TRAIN”. p.S1