Sin Tax for Health Programs (2009)

Summary:

For more than four years, key health programs were denied funding from "sin taxes," or excise taxes from alcohol and tobacco products - no thanks to the delayed implementation of the sin tax law.  Republic Act 9334, the law on excise taxes on alcohol and tobacco products, was passed as early as December 2004.  It provided for an increase in specified tax rates on alcohol and tobacco products, and earmarked increased revenues from the higher rates. Under the law, 2.5 percent of the incremental revenues from excise taxes on sin products be allocated each to the Philippine Health Insurance Corp. and the Department of Health

The funds for PHIC will be used for the government's National Health Insurance Program while the revenues for the DOH will go to a trust fund for its disease prevention program.

In January 2009, Lacson filed Senate Resolution 826 inquiring into why the implementation of the sin tax law's provisions on funding for the health programs have yet to be implemented since 2004.

But in February, government economic managers agreed to expedite the release of the funds. Lacson, chairman of the Senate ways and means committee, said this means between P30 to 50 million each for the DOH and the PHIC.

The promise of government to expedite the release of the funds, which came less than three months after Lacson got the chairmanship of the Senate ways and means committee.

Effect:

Health workers will finally get up to P50 million more for disease prevention, and another P50 million more for health insurance.