Utilization of Sin Tax

Background

Sin Tax Allocation by Programs, Activities and Projects in the 2015

GAA

Allocation for Universal Health Care, Medical Assistance Program and Health

Enhancement Facilities Program

Sin Tax Incremental Budget in the 2016 DOH Budget Proposal

Republic Act (RA) 10351 orthe Sin Tax Reform Act of 2012

enacted with an objective of reforming the taxes for tobacco and alcohol products, increasing the taxes thereof, and as a consequence, decrease the prevalence of smoking and alcohol related abuse among the youth and poor, and related morbidity & mortality

• This law restructured the existing taxes on tobacco and alcohol products generating additional revenues thereof, where 85% of the additional revenue is intended for health.

Department of Health

Joint Circular 001-2014, known as the Implementing Rules and Regulation of RA 10351

Identified as the main agency to compute allocation of Sin Tax earmarked for health to different health programs. This is a detailed report on expenditures of the amounts earmarked for health

• Removal of the price/brand classification freeze

The proper tax classification of alcohol and tobacco products will be determined every two (2) years.

Briefer on the Sin Tax Law

Structure

• Gradual shift to a unitary taxationThis is to simplify the current multi-tiered structure, to prevent downshifting to lowerpriced brands, to discourage consumption of sin products, and for easy tax administration.

Source:www.dof.gov.ph/wp-content/.../Briefer-on-Sin-Tax-Law-FINAL.pdf

• the Bureau of Internal Revenue reveal a higher actual Sin Tax collection for the said years, thus leaving a balance of PhP 14.22 B from collections in 2013, and PhP 9.12 B from 2014, resulting to a total balance of PhP 23.34 B.

Allocations for Universal Health Care, Medical Assistance Program and Health Enhancement

Facilities Program

A. Universal Health Carei. Financial Risk

Protection

iv. Access to Quality Health Services

ii. Attainment of Health Related MDG

iii. Health Awareness

A. Universal Health Care

i. Financial Risk Protection

- 73% or PhP24.56 B of the total Sin Tax incremental revenue for health

- constitutes 66% of the total NHIP budget for 2015 the - As of the second quarter of 2015, PhilHealth covers 45.41

M identified poor Filipinos, comprised of 15.28 M principal members in the National Household Targeting System for Poverty Reduction (NHTS-PR) list, and their 30.12M Dependents

NHIP

A. Universal Health Care

ii. Attainment of Health Related MDG

Non-Communicable Diseases and Health PromotionPhP 586 M- 88% is funded from the Sin Tax Incremental budget

Infectious Diseases

PhP 2.27 B

35% is funded from the Sin Tax Incremental budget

Elimination of Diseases (Malaria, Schistosomiasis, Leprosy, & Filariasis) PhP 788 M28% is funded from the Sin Tax Incremental budget

A. Universal Health Care

ii. Attainment of Health Related MDG

Expanded Program on Immunization

PhP 3.34 B 42% is funded from the Sin tax Incremental Budget

Environmental Health and Occupational Health Program

A. Universal Health Care

- allocated PhP 167 M, of which 3% is funded from Incremental budget

- Tobacco control is one of the primary programs in health promotion.

- Other programs: alcohol abuse, diet, and lack of physical activity.

iii. Health Awareness

The National Nutrition Survey 2013

-Filipino adults aged 20 years old and above, decreased from 31% in 2008 to 25.4% in 2013

-Smoking among children or those aged below 20 years old also decreased from 9.1% in 2008 to 6.8% in 2013

-This prevalence projects a decrease of smokers from 16.5 M to 13.5M, and 3.7M to 2.7M2 smoking adults and youth, respectively.

A. Universal Health Care

iv. Access to Quality Health Services

1. HRH DEPLOYMENT (DOCTORS, NURSES, MIDWIVES, OTHER HEALTH PROFESSIONALS)

- PhP4.26 B, of which 32% or PhP1.38 B is funded from the Sin Tax incremental revenue for health2. Hospital Operations

- PhP 12.28 B, of which 11% or PhP 1.33 B is funded by the Sin Tax incremental budget

3. Quick Response Fund - PhP 500 M, with funding source coming only

from the Sin tax incremental fund -

B. Medical Assistance Program

allocated a total of PhP 2.72 B in the 2015 Budget, PhP 1.85 B or 68% of which will be utilized for the grant of medical assistance to indigent and poor patients in government hospitals and the other PhP 874 M or 32% for the provision of medicines.

Sin Tax Incremental Budget in the 2016 DOH Budget Proposal

Thank you.