DOH backs P90 tobacco excise tax

by Dharel Placido, ABS-CBN News, Aug 15, 2018

MANILA – The Department of Health on Wednesday said it was backing proposals to increase the tobacco excise tax rate to P90 per pack to augment the proposed Universal Health Care law.

Health secretary Francisco Duque said the UHC program aims to provide primary health care for all Filipinos and this will require P769.55 billion the first four years of its implementation.

“Investing in UHC is actually a wise investment, because it is investing in our people. Aside from the benefit of a healthier and more productive population, UHC is key to reducing poverty in our country thus protecting Filipinos from the high cost of care. And to make UHC feasible, we are looking at the proposed increased in tobacco tax,” Duque said in a news conference.

Duque said increasing tobacco excise tax to P90 per pack from the current P35 will generate an estimated revenue of P37.2 billion.

Sen. Manny Pacquiao has a bill proposing to raise tobacco excise tax rates to P60 per pack while Sen. JV Ejercito proposes that this be raised to P90.

Under the UHC, all Filipino families will be enrolled in PhilHealth, “protecting them from impoverishing cost of medical care,” Duque said.

He added, it will also strengthen primary healthcare by matching families to a primary care provider that will ensure they get the appropriate health services they need at the appropriate health facilities.

It also seeks to improve access to health services by ensuring the availability of medicines, health-human resources and health facilities to all Filipinos. It will also strengthen the capacity of government to regulate and exercise its policy-making function to ensure all Filipinos have access to healthcare services.

The UHC will also spell out which services are to be paid for by the DOH, the local government units and PhilHealth.

He said the executive branch proposed that population-based services be financed by the DOH and local government units, while individual-based services be financed through a “national purchaser” which is the PhilHealth.

“This means that all funds intended for medical services are pooled into PhilHealth, thus also allowing them to have adequate negotiating power over healthcare providers and selectively contract those who abide by agreed quality and cost containments,” he said.

President Rodrigo Duterte has certified UHC as a priority bill.