Comparison between the Current Tax and the Proposed

Additional Tax on Junk Food to the Selected Retail

Stores
Current Tax on Junk Food Proposed Additional Tax on Junk
Food
The current imposed tax on junk Finance Secretary Carlos
food is the regular Value-Added Tax Dominguez III said he would like to
on sale of goods and properties that impose a tax on food products that
is 12 per cent are obesity- and disease-causing,

The imposition of a tax should

discourage people from consuming
these food items for their own
health.
Coverage of the so-called sin tax
law,
Proposed tax applied on junk food
either it will be based on specific or
ad valorem excise tax.
Current Tax on Junk Food Proposed Additional Tax on Junk
Food
PURPOSES:
1. Increase in budget allocation for
health services such as Philippine
Health Insurance Corporation
(PhilHealth) which then enable
the indigents to afford medical
care.
2. With the collection of sin taxes,
the premiums of the indigents
(Pantawid Pamilyang Pilipino
Program (4Ps) beneficiaries and
qualified senior citizens are
shouldered by the government.
3. Subsidizing the provision of
healthy food, like fruits and
vegetables, for poor children.
 The Effects on Sales
THEMES KEY TERMS REMARKS
Generating profit Increase Sales 7 Eleven
(University of the
Philipines,
Manila)
No Effect on The same sales Circle K (Upad)
Sales Mini Stop
(Espana)
Lawson (Padre
Noval)
 The Effects on Sales
THEMES KEY TERMS REMARKS
Incur losses Decrease Sales 7 Eleven (Bustillos)
7 Eleven (Philippines
Christian University)
7 Eleven (Leon Guinto)
7 Eleven (Delos
Santos)
Pure Gold (Bustillos)
Mini Stop (Dela
Fuente)
Lawson (Gastimbide)
7 Eleven (Agoncillo)
 The Effects on Inventory
THEMES KEY TERMS REMARKS
Insufficient inventory Greater number of Puregold(Bustillos)
in the store inventory to be re-
supplied
No Change on No increase or Circle K (Upad)
Inventory decrease in the Mini Stop (Espana)
number of inventory
to be resupplied Eleven (Delos Santos)
Lawson (Padre Noval)
7 Eleven (Up, Manila)
7 Eleven (Agoncillo)
7 Eleven (Leon Guinto)
7 Eleven (Philippines
Christian University)
 The Effects on Inventory
THEMES KEY TERMS REMARKS
Excess supply in the Less number of Mini Stop (Dela
store inventory to be Fuente)
resupplied Lawson (Gastambide)
7. Eleven (Bustillos)
Strategies/Response of the Retailers
THEMES KEY TERMS REMARKS
Promotions Discounts Mini Stop (Dela
Fuente)

Premium 7 Eleven (Bustillos)

7 Eleven (University
of the Philippines,
Manila)
7 Eleven (Agoncillo)
Confirmation Depend on their head 7 Eleven (Delos
office Santos)
7 Eleven (Philippine
Christian University)
Strategies/Response of the Retailers
Change of product line Pull some products Lawson (Padre Noval)

Replace with Lawson (Gastambide)

substitute/alternative
products
Change in price Minimal increase in the Circle K (Upad)
price
Follow the proposed Circle K (Upad)
SRP said by the
Government
No solution No action plan Puregold (Bustillos)
It is not yet Mini Stop (Espana)
implemented Lawson (Gastambide)
7 Eleven (Leon Guinto)
 Opinion of the Retailers
Themes Key Terms Remarks
Yes (Agree) To lessen the Puregold (Bustillos)
consumption of Circle K (Upad)
harmful products
7 Eleven (Univrsity of
To benefit less the Philippines,
fortunate it would be Manila)
used for the
government programs 7 Eleven (Philippine
Christian University)
 Opinion of the Retailers
Themes Key Terms Remarks
No (Disagree) Their sales would be Puregold (Bustillos)
decrease Mini Stop (Espana)
People will spend less Mini Stop (Dela
They would lose their Fuente)
job Lawson (Gastambide)
Price of the junk food Lawson (Padre Noval)
would be increase
7 Eleven (Bustillos)
They might lose
customers 7 Eleven (Delos
Santos)
7 Eleven (Agoncillo)
7 Eleven (Leon Guinto)
Probabilities of Distribution If Retailers are In
Favor or Not in Favor to the Proposed
Additional Tax on Junk Food

Percentage

Favor 33.33%

Not in Favor 66.67%