THE IMPACTS OF THE 2017 INCREASED EXCISE TAX ON CIGARETTES TO THE SMOKING BEHAVIOR AS PERCEIVED BY CONSUMERS IN LUCENA CITY

Cigarette smoking is the country’s leading cause of preventable death killing half a lifetime of users, the reason on why the government works hand in hand to provide solutions to this problem. One is the 2017 increase in excise tax under the Sin Tax Reform Law of 2012 imposing P30 tax on cigarettes. This study aims to determine the impacts of the increased excise tax on cigarettes to the smoking behavior of consumers. A questionnaire was designed and distributed to 400 respondents from 33 barangays in Lucena City. Chi-square, t-test, percentage and frequency method and weighted mean formula were used in obtaining satisfaction of the objectives. After thorough analysis, data gathering procedures resulted to the following findings. The increased excise tax has a significant impact in the smoking behavior. Smokers decreased by 22% after the increase while majority either stopped smoking or reduced their consumption. The demographic characteristics are factors that are greatly associated with smoking behavior of consumers. Respondents are willing to participate in smoking cessation programs and with another increase in succeeding years. Nevertheless, despite the awareness of illnesses it causes, quitting remains difficult. Obtaining knowledge relevant to gain a deeper understanding of this field in taxation is vital not just for government and City of Lucena, not just for tobacco industries, not just for businesses, not just for future professionals but for the economy as a whole