Alcohol And Tobacco Price Increases

[retired]

Curious what folks experience has been in Cebu area regarding the new " sin tax" having taken effect . I have read the implementation structure according to the BIR but get the feeling that open season will ensue for retailers and vendors . :-)

Case in point: Common brand of smokes at local sari goes from 25p to 35p = 40 % . Some brands have only risen 10 % while others as much as 75 -- 80 % . Also seems to be a shortage of smokes in general . Some due to folks stocking up prior to Jan 1 but much apparently due to retailers overstocking in anticipation of increase .

Have no experience with alcohol sales yet but will get there today as it's bill paying day ... :-)

Just Wondering

[JJReyes]

If the "sin tax" results in exorbitant prices for alcohol and tobacco products, a blackmarket or underground economy is created. The products are either manufactured locally or brought to the country from overseas (smuggling). The results are increased corruption and less government revenues.

[Bundy]

The results are increased corruption and less government revenues.

Just what the Philippines needs. :no:

[sonjack2847]

At the moment I don`t care of the increase in tobacco prices as I am trying to give up it is very easy NOT. Beer why don`t they leave it alone?

[earthdome]

If the "sin tax" results in exorbitant prices for alcohol and tobacco products, a blackmarket or underground economy is created. The products are either manufactured locally or brought to the country from overseas (smuggling). The results are increased corruption and less government revenues.

The price of cigarettes and alcohol are still relatively low compared to other countries so I don't think the margins are there yet for much of a black market.

I have heard that in New York City where a pack of smokes costs 10-12 USD over 50% of smokes are sold under the counter and there is a growing problem of organized crime smuggling cigarettes from low tax states to New York City.

[Jollygoodfellow]

If the "sin tax" results in exorbitant prices for alcohol and tobacco products, a blackmarket or underground economy is created. The products are either manufactured locally or brought to the country from overseas (smuggling). The results are increased corruption and less government revenues.

I don't know about that as there was always a tax and as time goes on it just becomes part of the general cost of living. If all this underground stuff goes on then I'm sure the government will be onto it as its not like in the 50's or what ever as they will be tracking shipments for their revenue. I think most countries have a higher tax on things like alcohol so its nothing new.

[StayAtHomeDad]

The lady at one of the local sari-sair stores bought up as many cartons of cigarettes as she could afford? Asked her if she would continue selling her "pre-tax stock" cigarettes at the old price, and she replied "Why I do that? Need earn more from old stock." Not judging - I guess it's just good business - but I bet alot of this type of thing happened all over. Oh well, it is but yet another good reason to consider quitting, I suppose.

[Bigdog]

But if she charges the old prices how will she pay to restock ? It not like they make a huge profit . It took me a few minutes and some convincing to get my girl to understand it also.

[i am bob]

But if she charges the old prices how will she pay to restock ? It not like they make a huge profit . It took me a few minutes and some convincing to get my girl to understand it also.

The store-owners costs stay the same - it's the tax that goes up.

[brock]

Was talking to the manager of 22nd st comedy bar in Cebu about this and he told me that they were only allowed to buy so much, not allowed to buy excessive amounts of stock.