Vanity tax to affect shops, manufacturers

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A PROPOSED 10 to 30 percent "vanity tax" will greatly affect sales performance of cosmetic products and beauty services in Davao City if the proposal be pushed through, a cosmetics store and aesthetic doctor said.

Last Tuesday, Twitter was busy after Ako Bicol Partylist representative Rodel Batocabe proposed "vanity tax" to be imposed on cosmetic items and procedures including but not limited to liposuction, face lift, nose job, and breast augmentation.

The hashtag #DontTaxMyBeauty trended on the same day with netizens commenting against the proposal, most of them saying that this proposal directly affects women.

Dr. Manny Calayan, cosmetic surgeon to the stars, who recently opened a branch clinic at SM Lanang, said the "Davao market (for beauty treatments) is good and have been very receptive since customers had been waiting for us to put up a branch there."

In a phone interview, Calayan said the customers are all the more convinced of consulting after learning that he himself comes to the branch once a week from Manila to personally check on the clients.

The Manny and Pie Calayan Clinic at SM Lanang opened in November last year.

When asked about the proposed vanity tax, Calayan said that the proposal should be considered since some of the cosmetic surgery procedures are not necessarily for vanity purposes only.

Some of these, like liposuction, is being performed for the patient's health.

"When you say cosmetic surgery procedures, there are a lot who really needs it. It's not necessarily just for the rich anymore, too," he said.

Joy Jasmin Colicot, the manager of Dermax Laser Center Abreeza branch, said their sales will be greatly affected if ever the "vanity tax" be pushed through.

Consequently, their prices for their products will also increase. This, Colicot said, would affect the number of customers patronizing their items.

Dermax Laser Center is a retail outlet of Philippine-made cosmetic products.

The Face Shop Abreeza branch, on the other hand, is a retail outlet of cosmetic items from South Korea. Their items, especially the BB Cream, are enjoying brisk sales among Davao women, said branch supervisor Anarica Manliguez.

Manliguez also added that since 2011, their branch had been welcomed warmly by women patronizing South Korean beauty products.

However, if the vanity tax is approved, Manliguez said that it will reflect on the sales of the store. Being a sales outlet for imported beauty products, they pay for customs taxes, which already jacks up their prices.

Vanity tax will add to this. Naturally, their price would increase together with the implementation of vanity tax.

Manliguez added that their customers might look for something more affordable.

Vanity Tax was proposed by Rep. Batocabe to be an alternative as the government pushes for adjustment of excise tax on petroleum which had long been overdue.

Batocabe said an excise tax for petroleum will affect more Filipinos especially those below the poverty line, also stating that this is because prices of goods and commute will primarily be affected by the petroleum excise tax.

"In comparison, any increase of price for beauty and cosmetic products and services shall only be shouldered by those who choose and can afford it," Batocabe said.

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