NIRC Tax Research Journal ‘Vol. XXVIILI January-February 2016 Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines” I. INTRODUCTION Cigarette smoking has long been viewed as an activity associated with men, at least in the Philippine context. Recently, however, female smoking caught the interest of health advocates due to the escalation in smoking incidences. Cigarette smoking is one of the country’s most potent killers causing several diseases and causing people’s deaths regardless of age and sex. During the launching of the national anti-tobacco campaign called “Cigarettes Are Eating You Alive” on August 6, 2015, Department of Health (DOH) Secretary Janette P. Loreto-Garin stated that as reported, about ten (10) Filipinos die every hour because of smoking!. This paper discusses gender-related perceptions on smoking, the causes and effects of cigarette smoking in men and women and how taxation policies and tobacco control programs can help curb smoking. Il. BRIEF HISTORY OF TOBACCO TAXATION Tobacco smoking originated from American civilizations? in the 600 to 1000 C.E. (Common Era); however, some sources also claim that tobacco leaves already existed in some parts of India and Africa’ in those ancient years. When European sailors voyaged to the "Prepared by Roma S. Rodriguez, Tax Specialist I, reviewed and approved by Ma. Berlie L. Amurao, ‘Supervising Tax Specialist and Marlene L. Calubag, Chief Tax Specialist, Indirect Taxes Branch, NTRC. ‘The study is part of the NTRC’s Gender and Development (GAD) Work Program, ' World Lung Foundation, Anti-Tobacco Campaign in the Philippines Highlights Serious Health Harms of Smoking and Second-Hand Smoke, Especially to Children, available at hitp:/www.worldlung foundation org/hv/ displ: /V/36620/pid/6858, viewed 22 January 2016. ? Tobacco History, available at http:/archive.tobacco.org/History/TobaceoHistory.html, viewed 15 January 2016, * bid. Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines aT]NIRC Tax Research Journal Vol. XXVIIL1 January-February 2016 | Westem lands, the tribesmen introduced tobacco to them. Sir John Hawkins, a naval commander and a merchant, was the first to introduce tobacco in England in 1564 or 1565 while Spanish and Portuguese conquests had spread it around the world. The first heavy tax levied on tobacco leaves, known with the intention to curb consumption, was imposed in the United Kingdom at 2 pence/Ib. As decreed’ by King James 1, the tax on tobacco was increased by almost 4,000% in the 1600s; from 2 pence'lb, to 6 shillings and 10 pence/Ib. (£1.76 to £63.30 based on 2014 net retail prices’ which shows « 3,496% increase). It was only during the 1700s when cigars were developed, and from then, cigarettes were derived by 1830. During the First and Second World Wars, cigarettes were included in army rations, Which resulted to a generation of habitual smokers. Tobacco advertisements, on the other hand, depicted cigarettes as glamorous and sophisticated. Consequently, with this targeted advertising, female consumption soared. Nonetheless, in spite of the hype on cigarettes, some organizations were suspicious of the effects these had on people. As a result, research findings about the fatal effects of tobacco received attention from the government, organizations and businesses; and for the first time, cigarette advertisements were banned in the magazines. Research on this area of study further proved the negative effects of smoking on the body, environment, etc. However, in spite of the contrary reaction of the said sectors, smoking incidence continued to rise in several countries. Ill. CIGARETTE SMOKING BY GENDER A. Smoking Behavior between Men and Women From its conception, tobacco has been predominantly used by men. In early times, women smoked less compared to men because of the norm that smoking in men connotes power, making it a symbol of masculinity, whereas smoking in women yo istor of Tobacco, availble at inyps/www historian org/bysubjectobaccoL.him, viewed 19 January 2016, = King James I described tobacco leaves as: “A custom loathsome to the eye, hateful 10 the nos, tarmful to the brain, dangerous to the lungs, and in the black, stinking fume thereof, nearest resembling the horrible Stygian smoke ofthe ~—pit. that ain TextHis 2, 2016, * Action on Smoking (ASH), Key dates in the history of anti-tobacco campaigning, available at mh Mdocuments/ASH 74 1.pdf, viewed January 2016. ’ Five Ways to Compute the Relative Value of a U.K. Pound Amount, available at www measuringworth, 1, viewed January 21, 2016. (z Gender, Tobacco and Texan: Cigarte Usage Behavior of Mon and Women ie Pilppings[NRC Tax Research Joural Vol XXVULT January Pebrary 2016 signals promiscuity’. Recently, it has been observed that in Wester countries, the gap between the smoking prevalence in men and women is closing in. According to Hitchman, et. al. (2010)°, higher-income countries tend to have higher female smoking incidences due to strong gender empowerment. Developed nations have relatively more liberal and progressive constitutions that promote equality, including that of the sexes. However, due to stricter tobacco control policies, developed countries are reported to expect declines in smoking prevalence’? for both men and women. According to Action on Smoking and Health, the same case was found true for some developing nations'', including the Philippines. Based on the 8th National Nutrition Survey conducted by the Food and Nutrition Research Institute (FNRI), smoking prevalence in the Philippines has gone down from 31% in 2008 to 25.4% in 2013; or specifically, from 53.2% in 2008 to 44.7% in 2013 in males, and from 12.9% to 7.8% in females. Compared to global average, however, male smoking incidence in the Philippines exceeded the global average of 36% with smoking prevalence of 44.7% in 2013. The same is also depicted for female smoking incidence at a higher rate of 7.8% against the global average of 7%. The smoking incidence of the total population was 25.4%, which was higher than the 21% worldwide average. Nonetheless, in spite of these larger than normal figures, smoking incidence in the Philippines declined in the five year period. Figure 1. ADULT TOBACCO SMOKING PREVALENCE IN THE PHILIPPINES, 2008 & 2013 | 50 = Male 2008 =~ Female 2008 | $20 = Total 2008 3 = Male 2013 E20 | m= Female 2013 | 10 =Total 2013 | | ° | Philippines Global Source of basic data; WHO, Food and Nutrition Research Institute-Department of ‘Science and Technology (FNRI-DOST) * Social Information, available at http://students.onconta.edwreznec66/as2/tobacco.html, viewed January 20, 2016. ° Hitchman, S. “Gender empowerment and female-to-male smoking prevalence ratios”, available at http://www. who int/bulletin/volumes/$9/3/10-079905/erv, viewed January 19, 2016. '° Action on Smoking and Health (ASH), Tobacco and the Developing World, available at hutp://ash.org.uk/filesdocuments/ ASH_126.pdf, viewed January 19, 2016. "id, Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines 33[INTRC Tax Research Journal Vol. XXVIILI January-February 2016 On the other hand, in the ASEAN region in 2013, the Philippines ranked second in adult male smoking prevalence next to Indonesia and first in females. Singapore has the lowest adult male and female smoking prevalence. It is worth noting that adult female smoking prevalence in the Philippines is twice as much as the regional average. Table 1. ADULT SMOKING INCIDENCE IN ASEAN COUNTRIES, 2013 Rank | Country Total Population Male Female 1 _| indonesia 36.3% 4.9% 2.1% 2_| Philippines 283% 47.7% 9.0% 3__| 120 ppR 25.5% 43.0% 8.4% 4 | Vietnam 23.8% 47.4% 14% 5__| Malaysia 23.1% 43.9% 1.0% 6_| Myanmar 22.0% 44.8% 7.8%. 7 _| Thaitand 19.9% 39.0% 2.1% 8 _| Cambodia 19.5% 39.1% 3.4% 9 | Brunei 18.0% 34.9% 3.9% 10 _| singapore 133% 23.1% 3.8% Regional Average 22.97% 42.78% 429% Source of basic data: Tobacco Taxes and Prices in ASEAN: An Overview May 2014 With regard to youth smokers, the Global Youth Tobacco Survey (GYTS) reported that 27.5% of Filipino students aged 13 to 15 years old have already smoked cigarettes and that about 13.7% of the respondents currently use tobacco products constituting 18.8% of boys and 9.3% of girls. In addition, some 10.5% of non-smokers have expressed interest to attempt smoking the year following the survey was conducted’? The Philippines has the fifth highest male youth smoking incidence rate in the ASEAN region which is lower than the country’s adult male smoking incidence. It tied at second place with Malaysia for youth smoking incidence for females" next to Brunei. " Global Youth Tobacco y (GYTS) jines 2011, available at (iw. doh. gov phisites/ lippineNAT! sYTS201 1 1315.pd viewed January 28, 2016, "" The ASEAN Tobacco Control Atlas, available at hipi/seatca.org/dmdocumentsatlas? pdf, viewed February 1, 2016. oe Gender, Tobacco and Taxation: Ciro Usage Behavior of Mon and Women a he Pippi‘NIRC Tax Research Journal Vol. XXVIILI January-February 2016 ‘Table 2. YOUTH SMOKING INCIDENCE IN ASEAN COUNTRIES. Rank Country Male Female 1 | indonesia? 41.0% 3.5% 2 | Mataysia® 309% 5.3% 3 | Thailand” 20.1% 3.8% 4 Brunei! 17.1% 6.7%. S| Phitippines* 12.9% 5.3% 6 | tao PDR* 143% 11% 7_| Myanmar! 13.0% 05% 8__| Singapore* 9.0% 4.0% 9 | Cambodia 19% | 5.0% 10 | Vietam* 5.9% 1.2% Regional Average 172% 3.6% Source of Basic Data: The ASEAN Tobacco Control Atlas, 2014 *2007°2009°2010 “2011 "2012 ‘2013, B. CAUSES OF TOBACCO SMOKING Women and men have different psychological patterns that influence their behavior. The same is evident in their motivation to smoke cigarettes. Men are found to smoke when they are experiencing postive emotions while women smoke to contradict any negative feelings they harbor'*. Men are also more prone to smoke in public places with their peers, whereas women, smoke in hidden places. Women are known to smoke to control weight, and to relieve stress, which may come from different pressing factors such as the given related causes: strained family relationships, peer pressure, poor religious background, etc. In the late 20th century, tobacco advertisements directed to women market milder cigarettes. Through this manner of advertising coupled with stressors in the modem world, women were compelled to smoke. Men too, start smoking with similar reasons in lesser frequencies. However, men tend to be more dependent on nicotine compared to women, which is most likely the primary influencing factor on cigarette addiction for men. In addition, men use cigarettes as a social tool. Todd, et. al (1996)'°, have concluded that role socialization and smoking have a complex relationship where there are cases that socialization is used a means to get rid of stress. Innes, E., Men smoke to have fun, but for stressed-out women, it’s all about preserving inner calm, ‘available at hiip:/www-dailymail.co.uk/health/article-2292606/Men-s 9 stressed-women: jner-calm.himl, viewed January 20, 2016, '5 Todd, M. & Chassin, L & Presson, C. & Sherman, S. (1996), Role stress, role socialization, and cigarette smoking: Examining multiple roles and moderating variables. Available at //psyenet.apa,org/journals/adb/10/4/211/, viewed January 21, 2016. Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines 35]([NTRCTax Research Joumal Vol NXVL Tanoary- February 7016 Figure 2. CAUSES OF CIGARETTE SMOKING OF MEN AND WOMEN Source: tobaccoffeemaine.com™ C. EFFECTS OF TOBACCO SMOKING Tobacco smoking leads to several common and unique consequences on men and women including cancer, fertility and reproductive problems, and eventually to death, According to The Tobacco Atlas, the Philippines experienced 71,850 tobacco- induced deaths in 2010, which comprised 19.6% of deaths of men and 9/4% of deaths of women. Congruent with smoking prevalence rates, more deaths occur in both men and women in the Philippines compared with other middle-income countries", ‘Table 3. CIGARETTE SMOKING RELATED DEATHS OF SELECTED MIDDLE INCOME COUNTRIES, 2010 Country Male [Female Philippines 19.6% | 9.6% Indonesia 19.8% | 8.1% Lao PDR 15.3% | 9.1%. Malaysia 19.0% | 8.2% Thailand 19.6% | 9.6% Vietnam, 22.0% | 9.5% [ Argentina’ 17.8% | 9.7% Brazil 12.8% | 9.4% Venezuela 10.9% | 10.1% ‘South Africa 7.0% 3.8% ‘Saudi Arabia 7.5% 4.0% ‘Armenia 30.4% | 5.4% Source: Tobacco Atlas"™ "* Partnership for A Tobacco-Free Maine, Gender differences and tobacco, available at ‘nupz/wwwv.tobaccofrcemaine.ore/channels/providers/gender_differences.php, viewed January 11, 2016, Tobacco Atlas, Philippines, available at http://www .tobaccoatlas.org/count hilippines/, viewed January 12, 2016, "Tobacco Atias, Various Countries, p/www tobaccoutls.or/, viewed January 2016 Be Gender, Tobacco and Taxation: Cigarete Usage Behavior of Men and Women nthe PlippingsNIRC Tax Research Journal Vol XXVIII1 January-February 2016 | Due to biological differences, some men and women smokers suffer distinct illnesses. Risks in developing cervical cancer'’, breast cancer”, ulcers”, and menstrual and pregnancy complications are higher for female smokers than non-smokers. Men, on the other hand, reportedly suffer from a decrease in sexual potency. Other than these, both men and women are also at risk for common smoking-induced diseases i.e. chronic obstructive pulmonary disease (COPD), diabetes, fertility problems, heart diseases and stroke and lung cancer” According to the GLOBOCAN Project” cited by the Philippine Society of Medical Oncology”, breast cancer is the leading cause of death for Filipina women in 2010, tallied at 4,000 deaths, which accounted for 18% of total deaths. In keeping with the same source, 2,197 and 1,984 women were lost to lung and cervical cancers, respectively — both are also among the effects of smoking to women. Furthermore, lung cancer is the leading cause of death for men®, Unlike female cancers, lung cancer is broadly caused by cigarette smoking and Second Hand Smoke (SHS)***’. Compared to men, women are more susceptible to incur more damage from SHS. The WHO stated that 64% of deaths caused by SHS are women’™. "7 WHO, 10 Facts on Gender and Tobacco, available at _htp://www.who.inUgender/ documents/0facts_gender tobacco en.pdf, viewed January 19, 2016. ® Simon, $ (2013), “Study Links Smoking to Breast Cancer Risk”, available at -/!www cancer org/cancer/news/study- 1 tcancer-risk, viewed January 20, 2016. 1" 11 Harmful Effects of Smoking on Women’s Health, available at httpi/ free, gov/I1- harmful-effects-of-smoking-on-women%E2%80%99s-health.aspx, viewed January 19, 2016. ® Center for Disease Control and Prevention, A Report of the Surgeon General ~ How Tobacco causes diseases? Available at’—_httpy/www.cde.gov/tobacco/data_statistics/sgr/2010/consumer_ booklet pdfivconsumer.pdf, viewed January 18, 2016 ® ‘The GLOBOCAN Project is initiated by the International Agency for Research on Cancer. “The aim of the project is to provide contemporary estimates of the incidence of mortality and prevalence from major types of cancer, at national level, for 184 countries of the world. The GLOBOCAN estimates are presented for 2012, separately for each sex. 1-, 3- and 5-year prevalence data are available for the adult population only (ages 15 and over).” Available at htp://globocan iarc.fr/Default.aspx, viewed January 26, 2016. % philippine Society of Medical Oncology, available at http:/psmo.org.ph/beating-cancer/, viewed January 20, 2016. % Philippine Cancer Society, Lung Cancer 1 availble at hupu/www.phleaner.org php: loads/2014/04/ f viewed January 22, 2016. % Second Hand Smoke is defined as Environmental tobacco smoke that is inhaled involuntarily or passively by someone who is not smoking. Definition of Second Hand Smoke, available at http://www medicinenet.convscript’main/art asp?articlekey=13423, taken January 28, 2016. » Philippine Cancer Society, Lung Cancer 2, available at_hitp//www.phileancer.org.ph/wp- Joads/2014/04 -leaflet-2r-pdf, viewed January 22, 2016. * WHO, op. cit. Gender, Tobacco and Taxation: Cigareite Usage Behavior of Men and Women in the Philippines 7NTRC Tax Research Journal Vol. XXVIII Tanuary-February 2016 Figure 3. EFFECTS OF CIGARETTE SMOKING ON MEN AND WOMEN” _ Both Men and Women © Chronic Obstructive Pulmonary. |< Disease (COPD) © Diabetes: F ‘Source: Center for Disease Control and Prevention, and Tobacco-Free Maine” Although both men and women are at risk to the listed diseases, it is evident that the impact of smoking is graver in women due to the number of diseases associated with it. IV. TAX POLICIES AND TOBACCO CONTROL PROGRAMS TO CURB SMOKING Generally, higher taxes are being imposed to lower the consumption of cigarettes for health reasons and to generate revenue. Current tax policies worldwide are neutral to all Kinds of smokers i.e. whether new or old; children, teenagers or adults; lower-class, middle- lass or upper-class; men or women; although they may affect males and females; and adults and the youth differently. Men are found to be more price-sensitive compared to women thus excise taxes Would certainly be more effective to men than women". On the other hand, women are more Men are also at risk of cardiovascular diseases; but women are more prone to suffer from it as induced by cigarette smoking, ™ Center for Disease Control and Prevention, op. ct. & Partnership for A Tobacco Free Maine, op.cit. °" Center fr Disease Control and Prevention, op. ct, & Partnership for A Tobacco Free Maine, op cit, 38 Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines |NTRC Tax Research Journal Vol. XXVIII January-February 2016 likely to cease smoking through wamings such as “Tobacco smoke ean harm your children’ and ‘Smoking during pregnancy can harm your baby’, With regard to the youth, regardless of gender, the government’s imposition of a minimum cigarette price can curb smoking since they are not yet long-term smokers as discussed by Bader, et. al. (2011)°°. The downside of this is that for long-term smokers and people of higher socio-economic classes, price floor policies will have little effect. Sylvain (n.d.)** has argued that the number of adult smokers remains the same even upon implementation of excise taxes on cigarettes; however, it lowers the incidence of youth smoking. In addition, the number of average cigarettes smoked per day decreased. ‘Some countries employ a mix of taxation and warning labels coupled with advertising limitations and age restrictions in drafting tobacco control policies. As gathered, the number of countries that impose taxes on cigarettes reached 163 out of 182° with exceptions to members of the Gulf Cooperation Council (GCC)**. In addition, there are at least 77 countries that mandated graphic warning labels in 2012,” which include Thailand, Australia, Uruguay, Brunei, Canada, Nepal, which are known to have adopted the largest labels. Age restrictions and advertisement regulations are also employed to restrain the market reach of tobacco products. In Sweden, the government advocates tobacco control through anti-smoking campaigns™ directed to women where 15.2% smoke compared to the 12.7% of men’’, Similarly, the United Kingdom implemented its Stop Smoking Services in 2000 where it provided support for pregnant women to quit smoking as one of its cessation programs” ® Greaves, L. & Barr, V., “Filtered Policy: Women and Tobacco in Canada”, available at http:/swww.cwhn.ca/node/41557, viewed January 14, 2016, ® Bader, P. & Boisclair, D. & Ferrence, R., “Effects of Tobacco Taxation and Pricing on Smoking. Behavior in High Risk Populations: “A Knowledge Synthesis” (2011). Available at ://www.ncbi.nlm.nih.gov' r , viewed February 1, 2016. ™ Sylvain, S. (n.), “The Effects of Excise Tax on Cigarette Consumption: A Divergence in the Behavior of Youth and Adults”, available at http://www michiganjb.org/issues/2/articles.pdf, viewed February 1, 2016. % Tobacco tax levels and structure: A theoretical and empirical overview, available at 2h ications/en_fi_tob_tax_chapter2,pdf, viewed February 1, 2016. ° Tia. * Larger, Picture Health Warnings: The Growing Worldwide Trend, available at ‘htp://global.tobaccofreckids.org/files/pdfvewWL status report en.pdf, viewed February 1, 2016. World Health Organization (WHO), Policies and Strategies: Chapter 10, available at tls bacco/publicat den ‘fi gender women how make policies more_gender_sen sitive;pdf, viewed February 2, 2016. » Tobacco Atlas, op. cit. “ WHO, Policies and Strategies, op. cit Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines 39[INTRC Tax Research Journal Vol. XVIII January-February 2016 | A. Sin Tax Law in the Philippines Republic Act (RA) No. 10351 (approved on December 19, 2012) or the Sin Tax Reform Law as implemented by Revenue Regulation (RR) No. 17-2012 simplified the Cxcise (ax structure of sin products by increasing the tax rates and gradually shifting the iquors and cigarettes to unitary tax system by 2017 with improving the general well-being of the people. Table 4 summarizes the exeise ta ates on Tobacco Products for each given year. Table 4. RA 10351: EXCISE TAX RATES ON TOBACCO PRODUCTS ‘Type 2013 2016 2017 Tobacco (a) Tobacco twisted by hand or ] reduced into # condition to Re, consumed in any manner | Phpl.75 | Php1.82 | Phpi.89 | Papi.o7 | Phpa.os ‘ther than the ordinary ‘mode of drying and curing; (b) Tobacco prepared or partially prepared with or without the use of any thachine or instrument or | PHPL.7S | Papi.82 | Phpt.89 | Php197 | Php2os without being pressed or sweetened; and (©) Fine-cut shorts and refuse, scraps, clippings, cuttings, rete eee Phpl.75 | Phpl.82 | Phpl.89 | Phpi.97 | Php2.0s ssweepings of tobacco; (@) Chewing tobacco unsuitable foruse in any other manner | PPI-S0 | Phpi.s6 | Php1.62 | Php16s | Phpi.7s Cigarenes (@) Packed by Hand PuP 12.00 | PhP 15.00 | PhP 18.00 | PhP 21.00 | PhP 30.00 (©) Packed by Machine | PAP 11.50 and below PAP 12.00 | PRP 17.00 | PhP 21.00 | PAP 25.00 | PAP 30.00 More than PHPI1.SO | PhP 25.00 | Pap 27.00 | PxP28.00 | PAP 20.00 | pap 30.00 Cigars = (@) Based on the NRP per cigar ] (excluding the excise and | 20% | 20% | 20% | 20% | 20% value-added taxes), and (b) Per cigar PhP 5.00 | PhP 5.20 | PhP5.61 | PhPS.62 | PhP 5.85 40, Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the PhilippinesNIRC Tax Research Journal Vol. XXVIII January-February 2016 It is worth noting that cigarettes packed in 20s declined by 1.5 billion packs or 26.02% in 2013 and by 595 million packs or by 14.07% in 2014. Declines in the VOR of cigarettes packed in Ss, 10s and 30s were also noted. Over-all there was a decline in the VOR by 15.52% in 2013 and 19.56% in 2014 (Table 5). ‘Table S. VOLUME OF REMOVALS OF CIGARETTES, 2012 TO 2014 (Ga Million Packs) ‘Volume of Removals Growth Rate ree Zoiz_| 2013 | 2014 | 2012-2013 | 2013-2014 Packed in 308 4124 0.08 =[-_-99.80% | -100.00% Packed in 20's 3,722.49 | 4233.53 | 3.63801 | 26.02% | -14.07% Packed in 10's = [635.35] 278.61 56.15% Packed in 5's [001 5 =100.00% Total 5,763.74 | 4868.97 | 3.91662 | 15.52% | _-19.56% Source of basic data: BIR For cigars, the VOR declined by 18.66% and 16.55% in 2013 and 2014, respectively (Table 6). ‘Table 6. VOLUME OF REMOVALS OF CIGARS, 2012 -2014 (In Thousand Pieces) hia ‘Volume of Removals Growth Rates on 2012 | 2013 [2014 | 2012-2013 | 2013-2014 Total | 1,630.61 | 1,326.29 | 1,106.79 | -18.66% | -16.55% Table 7 shows that collections in 2013 surpassed target by PhP19.28 billion or by 22.46% and realized a growth of 84.98% over the previous year. Substantial excise tax collections were maintained in 2014 where the actual collections of PhP 119.86 billion went beyond the PhP 105.17 billion target. In addition, the reported collections in the first half of 2015 already exceeded half of its goal, thus sustaining the possibil of surpassing the year-end target. Table 7. SIN PRODUCTS: ACTUAL COLLECTION VIS-A-VIS GOAL JANUARY 2012 - JUNE 2015 (Amounts in Billion Pesos) Collection Growth Rate [Collection vs. Goal Year | Collection | Goal [Amount % ‘Amount %. 2012_| 36.84 36:10 = 5 101 132% 2013 | 105.14 | 85.86 48.30 34.98% 19.28 | 22.46% 2014 | 119.86 | 105.17 14.72 14.00% 14.69 | 13.97% 201s" | 53.5" 140.4" oa} ‘Source of basic data: BIR Annual Reports 2012-2014 January to June 2015 only (BIR data) 91.396 to collestion goal of PhPS8.6 billion (January to June, 2015) ©2015 full year goal Gender, Tobacco und Taxation: Cigarette Usage Behavior of Men and Women in the Philippines aI(NIRCTax Research Touma Vol XXVIT Januan-Fobman 3016 ] AS mentioned earlier, adult smoking prevalence for current smokers in the fouMtry declined from 31.0% in 2008 to 25.4% in 2013. It is noted that prior to the implementation of RA 10351 average adult smoking prevalence for current smokers for the period 1998 to 2003 was at 34.8%. Specifically, adult smoking prevalence went down from 53.2% in 2008 to 44.7% in 2013 for male adults and from 12.5% to 7.804 for female adults during the same period. This can be attributed to the implementation of the Sin Tax Reform Law effective 2013. (Figure 4) Figure 4. PREVALENCE OF CURRENT SMOKING AMONG ADULT POPULATION (20 YEARS OLD AND OVER), BY GENDER 1o98- 2013 j woo a | Source: FNRI, 8 National Nutrition ‘Survey and 2008 Philippine Nutrition Facts aod Figures, Likewise, a significant decrease in current smoker is seen in children aged 10 — 19 years old upon the implementation of the Sin Tax Reform Law when it went down from 9.1% in 2008 to 6.8% in 2013, Particularly, smoking prevalence in children went down from 2.3% in 2008 to 1.2% in 2013 for females and from 15.1% to 11.9% for males during the same period. Figure 8, PREVALENCE OF CURRENT SMOKING IN CHILDREN (10 TO 19 YEARS OLD), BY GENDER 2008 - 2013 ae Source: FNRI, 8" National Nutrition Survey and 2008 Philippine Nutrition Facts and Figures 42 Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the PhilippinesNIRC Tax Research Journal ‘Vol. XXVIIL.1 January-February 2016 Based on the foregoing, the Sin Tax Reform Law succeeded in meeting its objectives of generating revenue for health funding and decreasing consumption of tobacco products, most particularly in children, both male and female. B. Graphic Health Warnings Law RA 9211 or The Tobacco Regulation Act of 2003 RA 9211*' or the Tobacco Regulation Act of 2003 aims to regulate the packaging, use, sale, distribution and advertisement of tobacco products and inform the public of the health risks associated with cigarette smoking and tobacco use. Specifically, the law provides for the following: (a) Smoking ban in public places such as all educational institutions and other youth recreational places; elevators and stairwells; locations where fire hazard is present (e.g. gasoline stations and storage areas containing petroleum); hospitals, laboratories, and other health facilities; transportation terminals, restaurants and conference halls except in assigned smoking areas; and food preparation areas. (6) Designated Smoking and Non-smoking Areas ~ Smoking is not allowed in any public place, private workplaces and other places where SHS may be exposed to non-smokers. However, buildings and proprietors may authorize smoking in an open space or an area with separate ventilation not located in non-smoking areas. Smoking areas should contain at least one visible and legible sign posted as ‘Smoking Area’, while non-smoking areas with ‘No Smoking’. (©) Vending Machine and Self-Service Facilities — ‘These sales services are restricted from selling tobacco products to minors unless they have a mechanism for age verification. (@) Retailer Compliance with Respect to Self-Service Facilities — Retailers are required to remove all tobacco products from self-service facilities that do not comply with the requirements of the Act. (ce) Minimum Age Sales — It is unlawful for any retailer to sell or distribute to a minor; any person to purchase tobacco products ftom a minor; minor to sell or buy cigarettes or tobacco and minors to smoke cigarettes or any other tobacco products. (f) Sale of Tobacco Products Within School Perimeters ~ not allowed within a 100 meter radius from any school or any public facility intended for minors. “' Entitled, “An Act Regulating The Packaging, Use, Sale, Distribution And Advertisements Of ‘Tobacco Products And For Other Purposes" Gender, Tobacco and Taxation: Cigarete Usage Behavior of Men and Women in the Philppnes 3[NTRC Tax Research Joumal Vol XXVIII Januan-Febrary 2076 ] ce) (h) @ @ (k) wo Signage - Point-of-Sale establishments selling, distributing or trading Cearettes are mandated to post the following signages: “SALE/DISTRIBUTION TO. OR PURCHASE BY MINORS OF TOBACCO PRODUCTS IS UNLAWFUL" or “IT IS UNLAWFUL FOR TOBACCO PRODUCTS TO BE SOLD/DISTRIBUTED TO OR PURCHASED BY PERSONS UNDER 18 YEARS OF AGE. Proof of Age Verification — Sellers, when in doubt, are allowed to request identification from their buyers indicating their date of birth; no individuals below 18 years of age can purchase tobacco. Waming on Cigarette Packages — Starting January 1, 2004, any form of tobacco advertising should contain the following warnings on a rotating basis, separately or simultaneously (See Box 1). As of dat, it is necessary that these health warnings occupy at least 30% of the bottom area of the Packaging’s front panel. The waming itself should cover at least 50% of the total warning frame. Box 1. GOVERNMENT WARNINGS ON CIGARETTE PACKAGES. “GOVERNMENT WARNING: Cigarette Smoking is Dangerous to Your Health:* “GOVERNMENT WARNING: Cigarettes are Addictive:” “GOVERNMENT WARNING: Tobacco Smoke Can Harm Your Children:* or “GOVERNMENT WARNING: Smoking Kills.” Warnings in Advertising ~ Tobacco companies are also restricted from targeting those aged below 18 Celebrity endorsements, cartoon characters, or any subject with comically exaggerated features are not allowed. In addition, persons appearing in advertisements should appear at least 25 years old and scenes should not depict the act of smoking in any manner. Ban on Advertisements — Starting January 1, 2007, all tobacco advertisements on television, cable television, radio, cinema, outdoor, Print (except inside the premises of retail establishments) and any form of ‘mass media not indicated are banned. Ban on sponsorship ~ Cigarette and tobacco companies are prohibited from any act of sponsorship for sport, concert, cultural or art events, including individual artists, athletes and/or performers. 44 Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the PhilippinesNIRC Tax Research Journal Vol. XXVIII January-February 2016 (m) Restriction on Sampling ~ The distribution of samples of tobacco products is not allowed for persons under the age of 18. RA 10643 or The Graphic Health Warnings on Tobacco Products Law A recent law, RA 10643* (approved July 15, 2014) also known as the Graphic Health Warnings on Tobacco Products Law, was enacted to wam smokers of the devastating effects of habitual smoking and to remove misleading or deceptive descriptions like “low tar, light, ultra lights, and/or mild” branding to convey or tend to convey that a product or variant is healthier, less harmful or safer. However, its implementation was delayed to March 3, 2016 due to pending Implementing Rules and Regulations of the said Law. The said law repealed Section 13 of RA 9211 (ie. Warning on Cigarette Packages), DOH Administrative Order No. 2010-0013, BIR RR No. 3-2006, Sections 18(e) and 23(a)(1)(b) as well as other laws, decrees, executive orders, administrative issuances. RA 10643 requires manufacturers to place warnings on the bottom half of both the front and back panels of the packaging as well as 50% of the principal display printed in four colors/cmyk/screen 133 lines per inch based on a source file of 300 dpi. Graphic health warnings should also contrast its corresponding packaging for visibility. Revenue Stamps would also be affixed on the graphic health wamings to avoid tampering. The side panels of any cigarette packaging should bear on one side additional health warnings, hotlines or websites, tobacco-health concems, and tips on how to stop smoking. These additional side panel warnings shall cover at least 30% of the side panel. (See Box 2 for additional guidelines) Box 2, RA 10643 - GRAPHIC HEALTH WARNINGS SPECIFICATIONS Graphic (1) The text waming accompanying the photographic picture waming shall be worded in such manner that an ‘ordinary layman wil understand what the picture is about and what the il-efects of smoking are on the health ofthe smoker and on the people round him; alth Warnings Specifications — ‘The text warning shall be placed on areas of the photograph where i wil not obscure the picture itself but wil be prominent displayed; ‘The text shall use no more than twenty percent (20%) of the entire area ofthe Graphic Health Wamings ‘and shall appear in clearly legible type and in contrast by typograph, layout and color, without the use of ‘any border, frame or any other design that wil effectively lessen the size ofthe textual waning; and ‘Te accompanying text shall be printed in Flipino on the front panel and English on the back panel. Inthe case of other containers where tere is oniy one (1) extemal surface area, the accompanying text wil alternately be in English or Filipino ‘Act To Effectively Instill Health Consciousness Through Graphic Health Warnings On Tobacco Products” Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines B[TRC Tax Research Touma Vol RXV Tana February 2016 ] Below are the proposed templates for the graphic health warnin; aimed to scare men and women smokers, alike, although most model further instill fear in women smokers, graph pregnant women and how smoking be added Which are To s showing the effects of smoking to ig can affect their babies or cause deformities should ire 6. GRAPHIC HEALTH WARNING ACT TEMPLATES Taal ta RETTE ia int) ca) ra et Rectan 4 rs oe = , ae a sont Pans i] | CIGARETTE | rad aug {BRAND | | BRAND | | BRAND | | eT ae Eg Ps a Y | ae Hw he 2 ar eras Cae aa aca fost) oa Coral |_BRAND a Fi F Cee ee wy | = TMPOTENCE Taal rial En i Compilation was taken from Rapple.com. Germomi, J, (DOH releases temy tes for scary cigarette packs". available at hip://www.rappler.con/nation/7405 L-cigaretes-graphic-health-warnings, viewed February 16, 2016 _____ Gender, Tobaceo and Taxation: Cigarete Usage 46 ge Behavior of Men and Women n the Philippines[NTRC Tax Research Journal Vol. XXVIILI January-Februa Figure 7. GRAPHIC HEALTH WARNING ACT CIGARETTE PACKAGE LAYOUT oa be CIGARETTE Eau 7 - He NaS National Smoking Cessation Program The National Smoking Cessation Program (NSCP) of the DOH is intended to assist any smoker who would like to stop smoking. The program aims to provide assistance to smokers with the intention to quit by providing facilities at the barangay level for accessibility. Smokers would undergo psychological testing as per DOH protocol and would be under the supervision of health professionals to facilitate their transition under its four components, viz. (a) Training — the NSCP requires all DOH health personnel, local government units (LGUs), selected schools, industrial and other government health practitioners to be trained in the policies and guidelines on smoking cessation. (b) Advocacy - A smoke-free environment (SFE) shall be maintained in DOH and participating non-DOH facilities, offices, attached agencies, and retained hospitals. DOH officials, staff, and employees, together with the officials of participating non-DOH offices, shall participate in the observance and celebration of the World No Tobacco Day (WNTD) every 31st of May and the World No Tobacco Month every June. Tnfographic taken from Rappler.com., ‘INFOGRAPHIC: What a scary cigarette pack in PH will look like’, available at http://www.rappler.com/newsbreak/iq/61220-graphic-health-waming-bill#, viewed March 3, 2016 Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines a7(NERC Research Journal Vol XVIILI January-February 3016 (©) Health Education — Smokers undergoing cessation shall receive professional assistance extending also to their families to support their transition. (d) Smoking Cessation Services ~ see Table 8. Table 8. NATIONAL SMOKING CESSATION FRAMEWORK DETAILING SMOKING CESSATION SERVICES Level of Care Intervention Package Equipment PRIMARY | © Risk assessment/ Risk screening (Note: Use Risk | « Risk Assessment Tool LEVEL ‘Assessment Form) * Quit Contract, L.Barangay | 6 Assess for Tobacco Use Health ‘© Referral Form Station * Ifsmoker, do Brief Intervention Advice (5 A's) See Attached Protocol © Ifnon-smoker, Congratulate and advice continue Healthy Lifestyle activity PRIMARY —_| Above Plus Patient Assessment Tool: LEVEL * Quit Clinic ‘© Stages of change (Use DOH Protocol or other suggested protocols e.g. | « WHO Mental Health Checklist 1. RHU Motivational Interview, SDA Protocol, etc. as available) * Motivation and Confidence to quit DOH Protocol provides: SECONDARY + Smoking History and Current LEVEL ‘+ Assessment of client's Smoking History, Current Smoking Status ‘Smoking Status and Readiness to stop smoking «© Self-test for reason for ‘+ Planning for clients Readiness to stop smoking smoking (Hom's Smoker's Self-test) ‘Quit day: Pharmacologic, Psychological and TERTIARY Behavioral Interventions © Fagerstrom Nicotine LEVEL Dependence Test * Identifying and address triggers for going back into smoking ‘* Selftest on Readiness to stop smoking * Dealing with cravings to smoke ** Previous attempts to stop ‘= Managing withdrawal syndromes smoking ‘* Monitoring and Prevention of Relapse Form: * Quit Lines © Quit Contract “ Department of Health (DOH), Smoking Cessation Program, available at, :lIwwww doh, gov. sking-cessation- viewed 17 February 2016, viewed February 2016 48 Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines igarNIRC Tax Research Journal Vol. XXVIL.1 January-February 2016 V. CONCLUSION AND RECOMMENDATIONS The impact of taxation policies and tobacco contro! programs on men and women are found to differ to a certain degree. It is important to note that adult smokers are less sensitive to taxation policies when it comes to smoking; although they may influence the frequency of smoking. Youth smokers are more sensitive especially to high prices since they are not yet long-term smokers. Lower and middle classes may cut down cigarette consumption with excise taxes or shift to lower-priced brands of cigarettes. Men are much more sensitive to tax on cigarettes or price changes while women are more likely to be influenced by graphic ‘warnings relating to child-bearing and family. Recognizing gender differences in causes and effects of cigarette smoking would thus, expand the perspective on tobacco control program formation. Aside from the aforementioned sample templates for graphic wamings showing the effects of smoking on adult men, specific warnings should also be directed at women smokers relative to the effects of smoking on pregnant and lactating women as well as its effects on their babies. Similar graphic warnings depicting the effects of smoking on the youth must also be included. Lastly, gender-specific smoking cessation activities/services that would be more distinctly effective for males and females, respectively should be included in smoking cessation programs. Gender, Tobacco and Taxation: Cigarette Usage Behavior of Men and Women in the Philippines a][NTRC Tax Research Journal Vol XXVLI January Febrary 2076 ] LEGISLATION AND ISSUANCES WITH REVENUE IMPLICATIONS: January ~ February 2016 f REPUBLIC ACT (RA) , Date of Date of Issuance Subject Tas Effeetivity RA 10742 “An Act Establishing Reforms in the January 15, | To take effect Sangguniang Kabataan Creating 2016 fifteen (15) Enabling Mechanisms for Meaningful days after the ‘Youth Participation in Nation-Building, completion of and For Other Purposes” its publication in the Official Section 8. Powers and Functions of the Gazette or any Sangguniang Kabataan — the two (2) Sangguniang Kabataan Shall: newspapers of general (a) xxx circulation. xxx (©) Hold Fund-Raising Activities Which Are in Line With the Comprehensive Barangay Youth Development Plan, the Proceeds of Which Shall Be Tax-Exempt and Shall Accrue to the General Fund Of ‘The Sangguniang Kabataan: Provided, However, That in the Appropriation ‘Thereof, the Specific Purpose For Which Such Activity Has Been Held Shall Be First Satisfied: Provided, Further, That Any Appropriation Thereof Shall Be In Accordance With Existing Applicable Budget, Accounting and Auditing Rules and Regulations; XXX RA 10744 “An Act Providing for the Creation and | Lapsed into | To take effect Organization of Credit Surety Fund law on fifteen (15) (CSF) Cooperatives to Manage and February 6, | days after its Administer Credit Surety Funds to 2016 publication in_| 30 Legislation and Issuances With Revenue Implications: January ~ February 2016NTRC Tax Research Journal Vol. XXVIII January - February 2016 , Date of Date of Issuance Subject en ffectivity Enhance the Accessibility of Micro, the Official Small and Medium Enterprises, Gazette or in Cooperatives and Nongovernment two (2) Organizations to the Credit Facility of newspapers of | Banks and for other Purposes” general circulation, SEC. 9. Tax Treatment of CSF Cooperatives. — A CSF Cooperative registered with the Cooperative Development Authority (CDA) shall enjoy the tax privileges of cooperatives under Republic Act (RA) No. 9520, otherwise known as the “Philippine Cooperative Code of 2008”: Provided, That the members of the CSF Cooperative which are not cooperatives, i.e. NGOs, shall be subject to regular taxes under the National Internal Revenue Code, as amended, and other tax laws. (See Sec. 3(i) of RA 10744) REVENUE REGULATION (RR) Date of Date of Issuance Subject Tee Effectivity RR 1-2016 ‘Amending Certain Provisions of February 10, | To take effect Revenue Regulations (RR) No. 3-2005 2016 fifteen (15) (Rules and Regulations Implementing days after EO 398 and requiring timely and publication in complete payment of taxes as a pre- any newspaper condition for entering into and as a of general continuing obligation in contracts with circulation government) Legislation and Issuances With Revenue Implications: January — February 2016 3NIRC Tax Research Jounal Vol. XXVIILT January - Febraary 2016 REVENUE MEMORANDUM CIRCULARS (RMCs) Date of Date of Issuance Subject (i Effectivity RMC 9-2016 | Clarifies the Taxability of Non-stock January 28, - | Savings and Loan Associations for 2016 Purposes of Income Tax, Gross Receipts Tax and Documentary Stamp Tax RMC 15-2016 | Entry into Force, Effectivity and February 16, | To be given Applicability of the Renegotiated | 2016 the widest Philippines-Germany Tax Treaty | publicity possible RMC 19-2016 | Clarifying the Tax Treatment of the February 19, | Effective Monthly Provisional Allowance and 2016 immediately Officer's Allowance Given to Military Personnel/Officers Under the Recently Signed Executive Order, Entitled "Modifying the Salary Schedule for | Civilian Government Personnel and | Authorizing the Grant of Additional Benefits for Both Civilian and Military and Uniformed Personnel" In Relation to Section 3 of Republic Act (RA) No. 9040 Exempting from Income Tax Certain | Allowances and Benefits Granted to the Members of the Armed Forces of the Philippines (AFP) RMC 24-2016 | Reiteration of Department of Finance February 24, | Tobe given Order No. 149-95 for Non-Stock Non- 2016 as wide a Profit Educational Institutions publicity as possible lL REVENUE MEMORANDUM ORDERS (RMOs) Date of Date of Issuance Subject eee Effectivity RMO 1-2016 | Implements the Centralized Processing of | January 7, | Effective Authority to Release Imported Goods 2016 | Immediately | (ATRIG) for Excisable Products Lz Legislation and issuances With Revenue Implications: January ~ February 2016)NTRC Tax Research Journal Vol, XXVIII.1_ January - February 2016 Date of Date of Issuance Subject es Effectivity RMO 2-2016 | CY 2016 BIR Collection Goal Allocation, | January 8, | Effective By Implementing Office 2016 | Immediately RMO 4-2016 | Amending the Pertinent Provisions of January 26, | Effective RMO 20-2007 on the Simplified 2016 | Immediately Processing of Applications for ‘Compromise Settlement and Abatement Cases by Concemed Regional Offices RMO 7-2016 _ | Prescribing the Policies and Procedures in | February | Effective the Decentralization of Processingand | 16,2016 | Immediately Issuance of Certifications on Internal Revenue Tax Payments to All Concemed | | Revenue Offices OTHERS Date of Date of Issuance Subject es Effectivity | Bureau of Department of Agriculture Memorandum | January ‘Customs Re: Issuance of Biosafety Permits 19, (BoC) 2016 ‘Customs Memorandum Circular (CMO) No. 6- 2016 BOC Customs | BIR Revenue Memorandum Order | January Memorandum | (RMO) No. 1-2016/Centralized 19, Circular Processing of Authority to Release 2016 (CMC) No. 7- Imported Goods (ATRIGs) for Excisable 2016 Products BOC Customs | Additional Procedure Code in the E2M January Memorandum | System to Exempt the Importations of | 29, Circular Breeding Stock and Genetic Material from | 2016 (CMC) No. 12- | Duty & VAT Under R.A. 7918 2016 Legislation and Issuances With Revenue Implications: January ~ February 2016 33[NTRC Tax Research Journal Vol XXVIII Tanuary~ February 2016 ] [ ] i Date of Date of Issuance Subject ro Effectivity BOC Customs | Maximum Numbers of Transactions to be January Memorandum | Transmitted to the E2M Systems thru the 25, Order (CMO) _| Facility of the Value Added Service 2016 No. 4-2016 Providers (VASP) DILG MC Provision of Tax Relief or Incentives to | February 2016-27 Business Establishment Which Area of 23, 2016 Operation Has Been Devastated by Disaster, or, Declared Under State of Calamity, or, Adversely Affected Due to LGU Preparedness Measures 34 Legislation and Issuances With Revenue Implications: January ~ Febraary 2016)