Connect with us

News

DOH, PhilHealth shortchanged by P28-B in excise tax shares

Published

on

In a statement, Senate President Pro Tempore Ralph Recto said the TRAIN law mandates that 50 percent of excise tax collections on “sin” and soda products shall be earmarked for health. (File Photo: Sen. Ralph Recto/Facebook)

MANILA — A Senate leader on Thursday said the Department of Health (DOH) and the Philippine Health Insurance Corporation (PhilHealth) have been shortchanged by about PHP28.3 billion from the collection of the increased excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

In a statement, Senate President Pro Tempore Ralph Recto said the TRAIN law mandates that 50 percent of excise tax collections on “sin” and soda products shall be earmarked for health.

Recto said the 50 percent health share shall “be allocated and used exclusively” in the following manner: 80 percent to the PhilHealth for Universal Health Care, and 20 percent to the DOH’s Health Facilities Enhancement Program (HFEP) and medical assistance program.

He noted that in 2018, the total collection from alcohol was PHP68.8 billion; from tobacco, PHP136.08 billion; and from sugar-sweetened beverages, PHP38 billion; or a total of PHP242.8 billion.

The lawmaker said the combined DOH-PhilHealth share should be PHP110.9 billion and following the 80-20 sharing, PHP88.72 billion should go to PhilHealth, and PHP22.18 billion to DOH.

He cited the proposed 2020 national budget wherein the PhilHealth is getting PHP67.3 billion, or PHP21.42 billion below its expected share while the DOH only gets an allocation of PHP5.9 billion for its HFEP and PHP9.4 billion for its Medical Assistance Program, or PHP6.9 billion short.

“For 2020, the two agencies’ sin tax dividends are PHP28.3 billion short of what Republic Act 11346 guarantees. This results in severe budget anemia,” Recto said.

“The Department of Health and PhilHealth should not be begging for funds. They should automatically be getting what is due them from the TRAIN Law,” he added.

Recto said the TRAIN law was sold on the promise that taxes collected from “sin” products will be spent for health, highlighting that “higher taxes on vice will be used to fund the virtues of health care.”

“Government must redeem, and not renege on this promissory note. Congress is duty-bound to rectify this mistake,” he added.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Headline1 week ago

A Day In My Life

There was a time when I thought a fulfilling life had to be busy to be meaningful. Now, I think...

Headline3 weeks ago

Letting Go with Love

There is a particular kind of heartbreak that comes with watching your child grow up. It isn’t the heartbreak of...

Headline1 month ago

Living With Anxiety: The Invisible Weight We Carry

There are illnesses we can see, and then there are the ones we learn to hide. Anxiety is often one...

Headline2 months ago

The Art of A Slow Weekend

We live in a world that glorifies being busy. Some people wear exhaustion like a badge of honour. Calendars are...

Headline2 months ago

Why We Chose an Intimate Wedding — And Why More Couples Are Doing the Same

Every wedding anniversary takes me back to one of the most magical days of our lives and reminds me why...

Headline3 months ago

Celebrating Turning 58

Birthdays have a way of making us pause—not to count the years we’ve lived, but to appreciate the countless blessings...

Lifestyle3 months ago

The Painful Reality of Losing Someone

Recently, I experienced the painful reality of losing someone through others. One friend lost her fiancé to death, while another...

Headline4 months ago

The Sobering Reality of Growing Old

Growing old brings a sobering reality: time is finite.  You watch your body slow down, see your parents age, and...

Lifestyle4 months ago

Dr. David Suzuki’s Legacy: A Celebration at 90

Celebrating Dr. David Suzuki’s 90th birthday on Friday, May 22  was a true privilege and a great pleasure! My husband,...

Lifestyle5 months ago

What I Know Now About Motherhood

Did you know that a mother’s cells can live in her child’s body for their entire lives? This fascinating phenomenon...