High tax, less income cut sales of sin products

A combination of two factors may be responsible for what appears to be slowly declining consumption of alcoholic beverages and tobacco.

The first, as shown by comparative figures obtained from the BIR, is the relatively heavier tax.

The second factor as shown in what is presented to be government statistics, is income and to a certain extent the success of the campaign against smoking and drinking alcoholic beverages.

None of these sits well with the observation of the World Bank which said that tobacco tax in the Philippines is among the lowest in Southeast Asia. The figures of the BIR show that the tax, as a percentage of the price of cigarettes, is 63 percent.

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