Philippine Business News | Online News Philippines

Details Published on Thursday, 04 October 2012 00:00 Written by AMADO P. MACASAET

It is becoming clear that health care is being used by the supporters of heavy taxes on smoke as a ploy or cover to collect more money from the tobacco industry.

The authors and supporters of HB 5727, the new excise tax proposal, are making us look like fools by making us believe the rates in the bill must be applied for the sake of the health of smokers.

The truth is there is money P50 billion of it, according to Senator Ralph Recto which should be remitted to PhilHealth and to the Department of Health for one single purpose health care.

Recto, chairman of the Senate ways and means committee yesterday repeated his charge that there is at least P12.5 billion from cigarette excise tax that should have been remitted to the Department of Health to fight smoking-related diseases notably lung cancer.

Obviously, the Department of Budget and Management which unconditionally support heavier taxes on cigarettes, never remitted the tax money to the Department of Health. But some lawmakers ably aided by the Department of Finance want more money from the cigarette makers.

It is becoming clear that health care is being used by the supporters of heavy taxes on smoke as a ploy or cover to collect more money from the tobacco industry. They have raised enough but the money is not used for the purpose they say it will be used for, that is to fight smoking-related diseases.

The refusal of the DBM to release the money to the Department of Health is a clear violation of RA 9334 which states that two and a half percent of the incremental revenue from excise on alcohol and tobacco products starting January 2005 shall be credited to the account of the Department of Health and constituted as a trust fund for its disease prevention program.

Another 2.5 percent from the same sources shall be remitted directly to the Philippine Health Insurance Corp. for the purpose of meeting and sustaining the goal of universal coverage of the National Health Insurance Program.

In other words, 5 percent of excise tax collected from sin products is clearly intended for health care.

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Philippine Business News | Online News Philippines

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