Senator Pia Cayetano: Zero Philhealth subsidy violates sin tax laws

PHILIPPINES, December 12 - Press Release
December 12, 2024

SENATOR PIA CAYETANO: ZERO PHILHEALTH SUBSIDY VIOLATES SIN TAX LAWS

The Senate Finance Committee Senior Vice-Chairperson, Senator Pia S. Cayetano raised her objection to the bicameral conference committee's decision to remove PhilHealth's 2025 government subsidy, warning that the move directly contradicts existing sin tax laws and threatens sustainability of PhilHealth coverage of indirect contributors.

Sen. Cayetano emphasized that the zero-subsidy decision violates Section 288-A of the National Internal Revenue Code. Under this provision, as amended by the Sin Tax Reform Acts of 2012 and 2019, 80% of revenues from tobacco products and sugar-sweetened beverages must be allocated to PhilHealth to fund the Universal Health Care Act.

"PhilHealth's accumulation of excess funds is an equally important issue, but it should be addressed separately," Cayetano emphasized. "The fact remains that our sin tax laws require that earmarked revenues should be allocated directly to PhilHealth."

Sen. Pia Cayetano is a key proponent of Sin Tax Laws which aim to reduce harmful consumption while funding essential healthcare services. The increased excise taxes have since helped curb smoking rates and provided vital resources for health programs.

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SENADORA PIA CAYETANO: PAGTANGGAL NG PHILHEALTH SUBSIDY, LABAG SA MGA BATAS SA SIN TAX

Mariing tinutulan ni Senador Pia S. Cayetano, Senior Vice-Chairperson ng Senate Finance Committee, ang desisyon ng bicameral conference committee na tanggalin ang subsidiya ng gobyerno sa PhilHealth para sa taong 2025. Ayon sa kanya, ang hakbang na ito ay direktang sumasalungat sa umiiral na mga batas sa sin tax at banta sa pagpapatuloy ng benepisyo ng PhilHealth para sa mga indirect contributors nito.

Binigyang-diin ni Sen. Cayetano na ang desisyong ito ay lumalabag sa Section 288-A ng National Internal Revenue Code. Sa ilalim ng probisyong ito, na inamyendahan ng Sin Tax Reform Acts ng 2012 at 2019, 80% ng revenue mula sa tax sa mga produktong tabako at sugar-sweetened beverages ay dapat ilaan sa PhilHealth upang pondohan ang Universal Health Care Act.

"PhilHealth's accumulation of excess funds is an equally important issue, but it should be addressed separately," ani Cayetano. "The fact remains that our sin tax laws require that earmarked revenues should be allocated directly to PhilHealth."

Bilang tagapagsulong ng mga Sin Tax laws, layunin ni Sen. Cayetano na mabawasan ang bisyo sa bansa habang lumilikom ng pondo para sa serbisyong pangkalusugan ng mga Pilipino.