MANILA – A proposal in the Senate to increase the tobacco excise tax rate to PHP90 per pack has gained support from the Department of Health (DOH).
“The DOH is currently supporting the proposal of increasing tobacco excise tax at 90 pesos per pack,” Health Secretary Francisco Duque said in a press briefing in Malacañang on Wednesday.
Senator JV Ejercito filed Senate Bill No. 1605 seeking to further increase the excise tax on tobacco products by PHP90 per pack while Senator Manny Pacquiao also filed his own SB 1599 proposing a PHP60 hike per pack.
“If it will be passed and I hope it will, the PHP90 proposal by Senator JV Ejercito is a big help to fund our PhilHealth program for every Filipino,” Duque said.
Under Ejercito’s proposal, the DOH official expects to have incremental proceeds amounting to PHP45.2 billion, which will be allotted for poor Filipinos who cannot afford to pay PhilHealth premiums.
“Eighty-five percent of the incremental proceeds will go (to) the PhilHealth and the 20 percent will fund our health facilities enhancement program and medical assistance to indigent patients,” Duque said.
He said the proposed additional excise tax on cigarettes is expected to also bring down significantly the smoking prevalence in the country from 21.47 percent to 14 percent.
“The objective is really to increase taxes on same products with ultimate or end-in-view of reducing the smoking prevalence in the country,” he said.
Duque said the increase on cigarette tax under the Tax Reform for Acceleration and Inclusion (TRAIN) 1 is only PHP2.50, bringing the total to only PHP48.26 per pack.
He said an increase on tobacco excise tax would be needed once the Universal Health Care (UHC) bill is passed into law.
“This will be used to augment the budget from the General Appropriations Act for funding of UHC, particularly to cover the premium payments of the non-contributory sector,” Duque said.
He said the DOH has already sent a request to Duterte for the UHC be certified as an urgent priority bill.
“He also mentioned it in his last SONA (State of the Nation Address). Gauging it or basing it on his articulations during the SONA, I would like to believe that this will be passed by Congress,” Duque said.
Meanwhile, Presidential Communications Operations Office (PCOO) Undersecretary Lorraine Badoy said the House of Representatives has approved its version of the UHC bill in September 2017 while the Senate version is now in the pipeline.
Badoy said the government would need about PHP305 billion to fund the UHC program.
“Revenues collected from proposed reforms in sin taxes and mining taxes will provide additional funding for the UHC,” she said.
Duque said the UHC bill “reflects the commitment of this administration to ensure that Filipinos live a good, comfortable and productive life”.
Under the proposed bill, the health chief said all Filipinos who are not employed are automatically considered PhilHealth “non-contributory members” whose premium shall automatically be subsidized by the national government.
“UHC aims to realize the right of every Filipino to health,” he said.
He said the bill also seeks to institutionalize reforms that would ensure better health sector performance.
“It improves access to health services by ensuring the availability of medicines, health-human resources and health facilities to all Filipino,” Duque said.
He estimated the incremental cost requirement for UHC at PHP135.56 billion for the first year, increasing all the way to PHP256.31 billion on the fourth year.
“I would like to highlight, however, that investing in UHC is actually a wise investment, because it is investing in our people. Aside from the benefit of a healthier and more productive population, UHC is a key to reducing poverty in our country thus protecting Filipinos from the high cost of care,” Duque added. (Jelly Musico/PNA)
