Impact of Imposing an Excise Tax on Sugar-Sweetened Beverages (SSB) to Business Operators in Selected Barangays of Padre Burgos, Quezon

Abstract

INTRODUCTION

This study focused on the impact of sugar-sweetened beverages (SSB) excise tax on businesses in selected barangays of Padre Burgos, Quezon. Excise tax could create a buying dilemma that can affect the economic activity of the concerned community. Thus, the conduct of this research is significant as it can contribute to changes to inter-related societal members. Furthermore, most of the previous studies and literature are focused on the impact of SSB excise tax on consumers living in urban areas. Thus, this study could help create an effective and rational generalization as it centered on the perspective of respondents in a rural area.

METHODS

A quantitative method was utilized by the researcher in analyzing and interpreting the data which were gathered through a survey questionnaire in checklist form. The respondents were thirty-five (35) business owners who were purposively chosen from four selected barangays of Padre Burgos, Quezon which were also chosen through purposive sampling technique.

RESULTS

The researcher found out that the minimum and maximum quantity of SSB sold daily by the businesses during the pre-tax and post-tax imposition period is low. Additionally, tax imposition did not affect the sales and profit generated by the respondents. Thus, the sales maximization and profitability of the businesses was not triggered by the tax in the small municipalities which contradicted the conclusion of the study entitled "Kamusta si Juan at Aling Nena" conducted on the second month of the implementation of higher excise tax on SSB in the Philippines which stated that sari-sari stores suffered a faster decline in sales of SSB (Nielsen, 2018). Similarly, Colchero et al. (2016) found that excise tax was associated with the reduction in per capita sales of SSB.

DISCUSSIONS

The result showed that the tax imposition has no impact on the small business owners since the study covered only a small area. Thus, future researchers can conduct a parallel study focusing also on the rural area but with larger coverage.