1.0.

Time Context
Due to the increasing consumption of harmful products, Government decided to impose a tax
on these sin products to be approved this year. As of 2012, the senate passes the bill
regarding the effectiveness of Sin Tax, creating additional revenue that is earmarked for
health purposes. The long run effects of these taxes are reduction in the supply of the
commodities in which the taxes are levied on. Government expects to earn higher revenue
that will further rise every year. And the Government also sees this as an opportunity to earn
higher additional revenue.
The estimated additional revenue for the year 2013 to 2016 is P 154.73 billion.
At the current year in addition to the revenue next year, the estimated amount is P 31.35
billion. Divided from P 26.87 billion from the Tobacco Company, P 3.03 billion from the
liquor and P 1.45 billion.
The revenue will increase during 2014 at P 39.02 billion. Smokers will pay P 34.72 billion, P
2.52 billion from fermented liquor and 1.78 billion from distilled spirits.
Government income from excise tax is expected to further rise when 2015 comes with a total
of 42.68 billion. P 36.27 billion from cigarettes, P 3.79 billion from fermented liquor and
2.62 billion from distilled spirits.
But in the meantime, Department of Finance assumed that the income taxes from the sin
products will fall down to P 41.51 billion. Of the amount, P 35.38 billion will come from the
Tobacco Company, P 3.03 billion from distilled spirits while the P 3.1 billion is from
fermented liquor.

2.0 View Point

Considered that once the Congress approved a new excise tax system on sin products, it is
expected that the price of the fermented liquors will rise. In order to divide the burden of the
tax imposed, the price should rise too.

3.0 Central Problem

4.0 Statement of Objective

4.1 Must Objectives

4.2 Want Objectives

5.0 Areas of Consideration

5.1External Environment

5.1.1 Threats

5.1.2 Opportunities
5.2 Internal Environmen

5.2.1 Strenghts

5.2.2 Weaknesses

6.0 Alternative Courses of Action

7.0 Final Decision

8.0 Reference