COMPUTER COLLEGE CALAMBA CAMPUS

SENIOR HIGH SCHOOL DEPARTMENT

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Smoking is a widely known in the Philippines and like other vises, it harms

our health and pocket. Due to the alarming rate of deaths and diseases caused

by smoking, a law was that deals with it was passed. RA 9211 which is also

known as Tobacco Regulation Act of 2003 is an act that regulates the

production, distribution, and consumption of tobacco products. It is the purpose

of this study to acquire the possible effects of this law, specifically the smoking

ban, in our economy.

The aforementioned issue of smoking ban is now a big talk and had

caught the attention of the mass. There were discussions about its impact in the

flow of the local and national economy and the subjects that will be mostly

affected especially those businesses that are producing cigarettes and farming

tobacco. According to a survey conducted by the Global Tobacco Survey (GATS,

2014) 17.3 million Filipinos are current tobacco smokers. Because of the large

number of smokers in the Philippines, smoking ban will possibly have an impact

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SENIOR HIGH SCHOOL DEPARTMENT

to our economy since cigarettes, from its production to distribution, is a part

of the cycle of the business world. Those 17.3 million consumers contribute in

our National Revenue since cigarettes is under the Sin Tax law (a law that adds

tax to cigarettes). These consequences may affect the government's fund for its

projects for the country.

Because of the smoking ban, consumers of cigarettes will decline in

number and this will be a problem to cigarette companies and tobacco farmers.

The decrease in demand of cigarettes will affect the production and sales of

companies that pay taxes. The local business owners might also face a

decrease in income. If these companies and small businesses continue to face

the said dilemma, workers, farmers and businessmen will be affected and might

lose their source of income which will increase the rate of unemployment in our

country that also concerns our economy.

In facing these scenarios, it is important to hear the perceptions of

ordinary citizens who will be shouldering the possible consequences that will be

brought by the smoking ban. They also have a say and criticisms that must be

given an attention. The focal point of this study is to cite the effects of smoking

ban based on the opinions of local business owners of Southville-VI, Brgy.

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SENIOR HIGH SCHOOL DEPARTMENT

Kay-Anlog, Calamba City, Laguna.

Background of the Study

The banning of smoking in the Philippines is now a big talk since its

implementation. The issues circulate from the said 'loophole' in the Act which

was the unclear definition of public place where smoking is prohibited, to the

economical impact it will cause to our country. But the most disturbing issue

was the effect of smoking ban in our economy since tobacco farming in the

Philippines is one of the contributors in tax revenues. The impact will also be felt

by the employees of cigarette companies and tobacco farmers.

On the other hand, there are debates which state that smoking ban is not

necessary since there is Sin Tax law that statistically reported to decrease the

number of smokers to 23.3 percent of the Philippine population as of 2015 from

31 percent in 2008 (Dr.Dans,2016). This clearly States that an increase in tax can

already cause Filipinos to avoid smoking.

The Department of Health (DOH) and the senate was concerned about the

health of over a hundred million Filipinos. And it is their purpose to give them the

right to have healthy surroundings that is free from cigarette smoke. Smoking

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SENIOR HIGH SCHOOL DEPARTMENT

ban's clear objective is to protect our health.

Upon the formulation of RA 9211, the concern of tobacco farmers and

employees were also given an attention. It was stated in the Section 3 of the

Tobacco Regulation Act of 2003 that the government will assist and encourage

Filipino tobacco farmers to cultivate alternative crops to prevent economic

dislocation. Although there is an action provided for farmers, companies and

employees will still be affected.

The researchers want to acquire data and first hand opinions from those

citizens who will be most affected with the banning of smoking. And because the

cigarette is one of the vises that the Filipinos were addicted to and it's tax has a

contribution to our national fund, we want to know if the local business owners

can feel its effect on our economy.

Statement of the Problem

This research focuses on the effects of smoking ban in the local economy

based on the perceptions of selected business owners in Southville-VI, Brgy.

Kay-Anlog, Calamba, Laguna.

It aims to answer the following questions:

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SENIOR HIGH SCHOOL DEPARTMENT

1. What is the demographic profile of the respondents in terms of:

1.1. Age

1.2. Gender

2. The level of awareness of the respondents about smoking ban in terms

of:

2.1. Knowledge

2.2. Information Distribution

3. The level of effectiveness of the smoking ban in terms of:

3.1. Purchases/ Sales

3.2. Income

Theoretical Framework

In order to describe the possible effects of smoking ban in the local

economy, the content of R.A. 9211 will be used. The Tobacco Regulation Act of

2003 "regulates the packaging, use, sale distribution, and advertisements of

Tobacco products" as noted in the Section 2 of the said Act.

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SENIOR HIGH SCHOOL DEPARTMENT

In the Section 3 of RA 9211, it was stated that the act will regulate and

subsequently ban the advertisements and sponsorships of tobacco products

which may lead to a decrease in information and knowledge about cigarettes.

Advertisement is one of the major factor in acquiring customers since promoting

a certain product will encourage the viewers to test and try it. Banning of

tobacco advertisements will lessen the rate of new smokers.

RA 9211 also prohibits the sale of tobacco products to minors (aged 17

and below) which was also mentioned in the Section 3 and 5. As observed in the

survey conducted by the Global Youth Tobacco Survey (GYTS) 17% of the Filipino

youth population are smoking. Local business owners obtains about a 30% of

their cigarette sales from minors and the said act will affect the given data.

In the purpose of the Act, it was start that the government will provide

necessary help for the tobacco farmers:

Section 3. Purpose - It is the main thrust of this Act to:

f. Assist and encourage Filipino tobacco farmers to cultivate

alternative agricultural crops to prevent economic dislocations.

Therefore, local tobacco workers might face difficulties in terms of

keeping up with the objectives of the act.

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SENIOR HIGH SCHOOL DEPARTMENT

Conceptual Framework

INPUT PROCESS OUTPUT

• Acquires the
level of
Respondents' • Survey
awareness of
awareness in Questionnaire
the respondents
terms of:
about smoking
• Knowledge • Interview
ban.
• Information
• Measures the
Distribution • Data
Effectivity of
analysis and
smoking ban
Smoking Ban's its figures
based on the
Effectivity in
respondents'
terms of: • Statistical
first hand
• Purchases/ Treatment
information.
Sales
• Income

FEEDBACK

Figure 1 describes the conceptual framework of the study wherein the input

consists of the awareness of the respondents in terms of knowledge and

information distribution. On the other hand, the process includes the use of

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SENIOR HIGH SCHOOL DEPARTMENT

methods such as the questionnaire, interview, data analysis and tabulation and

statistical treatment. The output states that the given input and output will

acquire the level of awareness of the respondents about smoking ban and

measure the effectivity of smoking ban based on the respondents' first hand

information. The given framework will be the basis of the researchers for the

necessary actions in data gathering.

Scope and Delimitation

This study focuses on the opinions of selected business owners in

Southville VI, Brgy. Kay-Anlog about the smoking ban's effect in the local

Economy. The researchers’ objective is to hear out the perceptions of ordinary

citizens regarding the law that the government is now implementing. The main

source of data is the survey questionnaire which was prepared and formulated

by the researchers. The data that is going to be acquired from the questionnaires

will be statistically treated. On the other hand, the data that the researchers will

acquire will be based on opinions and personal perceptions of the selected

business owners of the said town. he analysis won’t be accurate for a National

basis because there is only a small number of respondents in this study.

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SENIOR HIGH SCHOOL DEPARTMENT

Significance of the study

This study will be significant to the following:

Filipino citizens. the facts and data that will be tackled in this study will be

beneficial to those who are not yet well informed about the given topic.

Smokers. who will know the possible effect of smoking ban to their

expenses. They will also be reminded that smoking is prohibited in public places.

Economic Teachers. who may use this study for teaching. This study may

be used as a learning material and reference in teaching economics.

Small business or company owners. who will be aware about the possible

impact of smoking ban in their businesses.

Respondents of this study. who will gain knowledge about the smoking

ban through answering the questionnaire which was consists of several facts

about the RA 9211.

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SENIOR HIGH SCHOOL DEPARTMENT

Future researchers. that will have background knowledge about the effects of

smoking ban in the Philippine Economy. They can also make a study that

supports the results of this research.

Definition of terms

The following terms are operationally defined for better understanding of the

readers according on how they were used in the study. Cigarette, as used in the

study, refers to the product that was made out of tobacco which is used to

smoke. Economy, as used in the study, refers to the business world and measure

of income in the Philippines. Revenue, as used in the study, it refers to the total

fund of the government that was raised from taxes. Sin Tax Law, as used in the

study, this refers to the law that adds tax on cigarettes. Smoking, as used in the

study, it refers to the vise where the smokers use a cigarette. Lastly, tobacco, as

used in the study, this refers to the plant that is used for cigarettes and widely

farmed in the Philippines.

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