New sin taxes bill more of a health measure than revenue-generating one —DOF exec

Finance Assistant Secretary Antonio "Tony" Lambino on Sunday maintained that the proposed measure on new sin taxes is more of a health measure rather than a revenue-generating one.

In an interview on Dobol B sa News TV aired on GMA News TV, Lambino said the purpose of the measure is primarily to generate funds for the implementation of the Universal Health Care law. The said law guarantees all Filipinos equal access to quality and affordable goods and services in healthcare.

"It's an investment that we really need to make. Kasi 'yan 'yung isa sa pagkukulang talaga ng ating public investment, 'yung ating primary care at preventive care," he said.

"Itong sin tax, makakatulong siya. Pero hindi mapupunan 'yung buong gap, kulang," he added.

The measure on new sin taxes seeks to increase taxes on alcoholic drinks, heated tobacco products, and vapor cigarettes.

It also includes a provision making the medicines for heart disease, diabetes, and cholesterol to be free of value-added tax (VAT) starting January 22.

Medicines for mental health, cancer, tuberculosis, and kidney diseases will also be VAT-free starting January 2023.

The measure is expected to generate some P22 billion in revenues for the government. However, this amount may actually be lower considering the VAT exemptions for medicine.

"Siguro doon sa P22 billion, mababawasan 'yan ng mga around P5 billion sa first year from the reduced VAT. So P17 billion ang neto niyan, around P17 billion," he said.

"[This is] just to show na talagang this is not just about the revenue. It's about the health status of the Filipino people," he added.

Apart from generating revenues for the implementation of the Universal Health Care law, Lambino said the measure also seeks to reduce public consumption of sin products like cigarettes, alcoholic beverages and vapes.

"Kitang-kita naman natin na taxation is one of the most effective ways para babaan ang pagkonsumo ng produkto na hindi mabuti para sa ating kalusugan. Makikita naman natin na even though merong reduction, hindi mawawala ang consumption," he said.

"We're asking those who insist on consuming mga unhealthy products na mas malaki na lang 'yung ambag nila sa ating Universal Health Care dahil... the likelihood is mag-a-access sila ng mga health treatments dahil mas prone sila na magkasakit talaga," he added.

Health Undersecretary Eric Domingo also believes higher taxes could discourage people from consuming addictive products.

"'Yung medyo may edad na, may pera at talagang addicted na, kasi nakaka-addict talaga ang tabako at 'yung vape dahil sa nicotine. 'Yan ay hindi masyadong nababawasan," he said.

"Pero ang maganda, 'yung mga bata na hindi pa gumagamit ng mga produktong ito, bumabawas 'yung sumusubok dahil hindi na nila kayang bilhin," he added.

Both the Senate and the House of Representatives have ratified the bicameral committee report on the measure on new sin taxes.

The bill will now be sent to Malacañang for the signature of President Rodrigo Duterte. —Erwin Colcol/KG, GMA News