Philippine: Healthcare funding gap to get bigger if no sin tax increase —DOF

18 May 2019
Aileen Cerrudo

The Department of Finance (DOF) said there will be a funding gap of P62 billion for the recently passed Universal Health Care (UHC) if Congress will not increase sin taxes on tobacco and alcohol.

In a press briefing of the DOF and the Department of Health (DOH) on Friday (May 17), DOF Secretary Carlos ‘Sonny’ Dominguez III said there would be difficulty in implementing the UHC without new sources of revenue.

“If we do not establish new sources of revenue, we will not have enough funds to properly, fully implement Universal Health Care and ensure a better quality of life for all Filipinos,” he said.

He adds that if the increased sin taxes will be approved, the UHC can cover around 120 drugs to Filipinos.

Meanwhile, Health Secretary Francisco Duque III said raising taxes will also reduce consumption leading to better health for Filipinos.

“Sin tax is first and foremost a health measure. When the prices of cigarettes and alcohol are higher, it is harder, especially for the youth to buy these very harmful products. We can only reduce consumption by making these “sin” products less affordable to consumers,” he said.

Both departments also envisioned the Philippines to be one of the healthiest in Asia by 2040. They propose to increase tobacco taxes by P60 per cigarette and P40 per liter of alcohol.

“With 9 days remaining in the 17th Congress, there is still time to collectively take action. We look forward to the support of our counterparts in the legislature, during this crunch time. This is the final round, tapusin na natin ang boksing, (Let’s finish the fight)” Duque added.

Senator Manny Pacquiao filed Senate Bill 1599 which aims to increase tobacco excise tax to P60 per pack in the first year of implementation, and an additional nine percent each year afterwards.

Senator Sherwin Gatchalian filed Senate Bill 2177 raising tobacco taxes to P70 per pack while Senator JV Ejercito filed Senate Bill 1605 increasing tobacco taxes to P90 per pack.

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