By Liza Soriano
MANILA — Senator Pia Cayetano argued that the removal of PhilHealth’s government subsidy for 2025 contradicts existing sin tax laws and jeopardizes the sustainability of PhilHealth coverage for indirect contributors.
Cayetano stressed that the decision to eliminate the subsidy violates Section 288-A of the National Internal Revenue Code.
Under this provision, amended by the Sin Tax Reform Acts of 2012 and 2019, 80 percent of revenues from tobacco products and sugar-sweetened beverages must be allocated to PhilHealth to fund the Universal Health Care Act.
“PhilHealth’s accumulation of excess funds is an important issue, but it should be addressed separately,” Cayetano said. “The fact remains that our sin tax laws mandate that earmarked revenues be directly allocated to PhilHealth.”
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