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Sin tax reform in the Philippines : transforming public finance, health, and governance for more inclusive development (English)

Excise taxes on tobacco and alcohol products can be an effective instrument for promoting public healththrough curbing smoking and excessive drinking, while raising significant revenues for developmentpriorities. If designed and implemented well, excise taxes can be a win-win for public health and finances.While the public policy rationale for excise reforms is strong in both developed and developing countries,those seeking to make reform happen usually face significant opposition from the tobacco and alcoholindustries and other vested interests. Consequently, low-level, complex, and poorly designed excise taxregimes persist. Getting the technical details right and effectively managing the political economy ofreforms are vital to securing better excise tax outcomes. In 2012, the Philippines successfully passed a landmark tobacco and alcohol tax reform—dubbed the Sin Tax Law. The reform not only greatly increased, simplified, and improved the excise tax regime, but alsocontributed to the government’s Universal Health Care (UHC) goals by earmarking a substantial share of theincremental tax revenues for the health insurance of the poorest 40 percent of the population and otherpublic health programs. The reform was also noteworthy for its emphasis on results monitoring and public disclosure of information. Sin Tax Reform in the Philippines describes the design of the Philippines sin tax reform, documents the technical and political processes by which it came about, and assesses the impact that the reform hashad after three years of implementation. A central question is the extent to which the reform is both demonstrational—in the sense that it can serve as a model for other reform efforts in the Philippines and else where—and transformational—in the sense that it indicates a new and different way of bringing about policy change in the Philippines, tackling economic rent-seeking and vested interests, and buildingcoalitions that serve the public interest.This book should be of interest to all who wish to see the health, public finance, and good governanceobjectives of the Philippines Sin Tax Law attained, as well to those who are pursuing similar reforms inother countries.

Details

  • Author

    Kaiser,Kai-Alexander, Bredenkamp,Caryn, Iglesias,Roberto Magno

  • Document Date

    2016/07/26

  • Document Type

    Publication

  • Report Number

    106777

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Philippines,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2016/07/13

  • Disclosure Status

    Disclosed

  • Doc Name

    Sin tax reform in the Philippines : transforming public finance, health, and governance for more inclusive development

  • Keywords

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Citation

Kaiser,Kai-Alexander Bredenkamp,Caryn Iglesias,Roberto Magno

Sin tax reform in the Philippines : transforming public finance, health, and governance for more inclusive development (English). Directions in development Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/638391468480878595/Sin-tax-reform-in-the-Philippines-transforming-public-finance-health-and-governance-for-more-inclusive-development