Senator Pia Cayetano Backs Sin Tax Revenues for PhilHealth
Senator Pia Cayetano strongly supports calls to uphold the mandatory allocation of sin tax revenues to the Philippine Health Insurance Corporation (PhilHealth). This comes after PhilHealth received a zero budget in the 2025 national appropriations. The senator emphasized that the sin tax revenues must be properly channeled to PhilHealth to ensure health services reach Filipinos in need.
Cayetano joined recent petitions filed before the Supreme Court, where groups questioned the government’s failure to allocate these funds. The Medical Action Group and Social Watch Philippines highlighted the violation of Republic Act 11346, which mandates that excise taxes on tobacco and sugar-sweetened beverages be designated for PhilHealth.
Legal Mandate Ignored, Groups Assert
The petitioners argue that the government failed to remit the funds as required, including unaccounted shares dating back to 2019. “The sin tax law is clear: A portion of revenues from tobacco and sugar sweetened beverages must go to PhilHealth to fund the delivery of healthcare services to the Filipino people,” Cayetano stated.
She warned that ignoring this requirement is not only illegal but also harms vulnerable sectors relying on PhilHealth coverage. During the 2025 budget discussions last year, Cayetano raised concerns about the government’s non-compliance with the sin tax law.
Budget Concerns and Fiscal Discipline
According to the senator, at least ₱69.81 billion from sin taxes should have been allocated to PhilHealth in 2025. Despite this, PhilHealth’s budget was set to zero. Cayetano signed the bicameral report on the 2025 General Appropriations Act with reservations, explicitly opposing the removal of government subsidies for PhilHealth.
She acknowledged the issue of PhilHealth’s excess funds but insisted that fiscal discipline should not justify withholding legally mandated sin tax revenues. “This is about upholding the law and protecting the rights of millions of Filipinos who rely on PhilHealth coverage,” Cayetano stressed.
Local leaders and health advocates agree that ensuring the proper allocation of sin tax revenues is vital for sustaining PhilHealth’s ability to serve the public. The debate highlights the tension between fiscal responsibility and legal mandates designed to safeguard public health financing.
For more news and updates on sin tax revenues, visit Filipinokami.com.