debbie wetzel senior director, global governance practice...
TRANSCRIPT
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March 30, 2016
Debbie Wetzel
Senior Director, Global Governance Practice
World Bank Group
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Headline Indicators
Inflation
Subsidy/staples Prices
Public Sector Performance
Regulate
Tax
Spending
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Case #1: Philippines Sin Tax Reform Tracking
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Shift from low & fragmented excise tax rates to
higher unitary rate for cigarettes
Introduction of New
Holographic Tax Stamp in 2015
(“whale”)
Earmarking of revenues to finance Universal
Health Care (UHC)
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….but all packs will be taxed at close to 70 cents
per pack by 2017 with a unitary rate
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Limits & lags to available price data
No capture of new market entrants
Philippines Statistics Authority (PSA) price
disclosure constraints
Inability to target and map price captures
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9
Recruit & Train Filipinos Identify specific stores, measure
prices, and tax stamp prevalence
Build decision support tools
& analytics
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Real time monitoring of cigarette price data
Cheap cigarettes are bad bargains for health!
Monitoring of Tax Stamp roll-out
Hot spots & brands
Public disclosure of results on Department of Finance website
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www.dof.gov.ph
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CIGARETTES - TAX STAMP PRESENCE NEAR METROPOLITAN MANILA TAX DISTRICTS FROM OCT 1 - DEC 31 2015
15
BIR
District
Tax Stamp
Prevalence
56 74%
60 75%
53A 75%
51 75%
55 75%
56 74%
BIR
District
Tax Stamp
Prevalence
53B 100%
45 92%
21A 90%
27 90%
17A 90%
Least
Compliant Most
Compliant
Data from Oct 1 - Dec 31 2015
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Sin Taxes increased from 0.5 % to 1.0 % of
GDP between 2012 to 2015, large due to
cigarettes
1 % Tax Stamp Leakages = USD 20 million
Expansion to health warnings
Pilots to capture illicit tax stamps
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Pay attention to excise tax design and implementation
Simple pays
On-going re-fresh of tax stamp design
Easier for public capture
Public scrutiny and information promote accountability
Government & Industry
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Case #2: eProcurement in Amazonia, Brazil
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1.6 million km2
2.3 people/km2
1.8% of pop.
27% rural pop.
62 municipalities
Source: IBGE 2010.
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Conclusions
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International
Benchmarking
Prices for Impact
Evaluations
Open Governments &
Accountability
Expectations!
?
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THANK YOU