Solons grill gov’t officials on social benefits program under tax reform

Lawmakers from the House of Representatives grilled on Tuesday officials of various government agencies over the social benefits program under the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

In particular, members of the House Committee on Ways and Means wanted to know about the healthcare services funds from sin taxes, or taxes from tobacco products alcoholic beverages.

Deputy Speaker Prospero Pichay Jr. noted that there was no social protection program on health under the TRAIN law.

“Alam naman natin na ‘yung sin tax, whatever revenue that it will get, should go to the Department of Health. Bakit wala tayo?” Pichay said.

Director Rolando Toledo of the Department of Budget and Management explained that revenue from sin tax is treated separately from the collections under the TRAIN.

“There’s a separate computation, as far as the Sin Tax is concerned, when it comes to what has been collected for Sin Tax and what has been provided in the budget,” he said.

“We have that identification or rather attribution of what has been collected under Sin Tax and what has been provided in the budget,” Toledo noted.

But Pichay pointed out that sin tax is part of the TRAIN law.

House panel chair Dakila Carlo Cua wanted to know whether the sin tax under the TRAIN law, from which 15 percent of the revenue is supposed to be spent on stakeholders and farmers, and the balance on healthcare services, is still in place.

“Meron pa rin bang pondo ‘yun that goes to the Universal Health Coverage or yung PhilHealth ng ating mga kababayan?” Cua asked said

Chua, Finance Undersecretary Karl Chua noted that while there are many sin taxes, the particular levy under TRAIN law was vetoed by President Rodrigo Duterte.

“The only earmarking provided for the latest round is the one going to the tobacco-producing provinces. However, this is part of the President’s veto message. That is why, for this particular round of increase, there is no specific earmarking,” he said.

This development prompted a realignment of sin taxes that will be part of the 30 percent allocation for general social services under the TRAIN law, including  unconditional cash transfer, Pantawid Pasada Program, and social benefits card.

“However, ‘yung previous sin taxes retained the allocation: ‘yung 15 percent to the provinces and the rest to the healthcare. So ‘yan ‘yung difference ng present and previous sin taxes,” Cua noted.

For her part, Director Melissa Guerrero of the Department of Health said she hopes that under the Universal Health Care Bill—now under deliberations in the Senate— there will be a provision to fund healthcare services from new sin taxes coming from tobacco products and alcoholic and sweetened beverages under the tax reform law.

The House panel has approved the second package of tax reforms proposed by the Duterte administration, which aims to reduce the corporate income tax rate from 30 to 20 percent and rationalize fiscal incentives.

The bill is now being considered for second reading at the House of Representatives. —VDS, GMA News