MALACAÑANG on Tuesday officially asked lawmakers to fast-track the passage of the bill raising the rate of “sin” taxes anew.
In a letter addressed to Senate President Vicente C. Sotto III, Executive Secretary Salvador C. Medialdea said President Duterte certified as urgent Senate Bill 1074, or the Act Increasing the Excise Tax on Alcohol Products, Heated Tobacco Products, and Vapor Products.
Duterte said the passage of the new legislation aims to allow the government to generate additional revenue “to support the effective implementation of the Universal Health Care [UHC] Act and to further protect the right to health of the people.”
The Department of Health (DOH) earlier requested for P257 billion to implement UHC next year.
However, the Department of Budget and Management said only P166.5 billion has been allocated for the UHC under the 2020 National Expenditure Program.
Due to lack of funds, DOH said it fully implements the UHC.
The Department of Finance (DOF) earlier said the new law for a higher sin tax is necessary since the current revenue streams for the UHC are not enough.
Without the said legislation, the DOF estimates the government will incur a P426-billion funding gap by 2024.
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