Senator Pia Cayetano has joined calls to enforce the mandatory allocation of sin tax revenues to PhilHealth, after the agency received no budget in the proposed 2025 national appropriations.
A petition filed with the Supreme Court by the Medical Action Group and Social Watch Philippines claims the government violated Republic Act 11346 by failing to allocate funds from tobacco and sugary drink taxes to PhilHealth. The groups are also demanding the remittance of unallocated shares since 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. Ignoring this is a violation of the law and a disservice to our most vulnerable sectors,” said Cayetano.
As Senior Vice Chair of the Senate Finance Committee on health, the senator from Taguig flagged the omission during budget deliberations, noting that P69.81 billion should have been earmarked for PhilHealth in 2025. She signed the budget with reservations, opposing the removal of PhilHealth’s subsidy.
While acknowledging concerns about PhilHealth’s excess funds, Cayetano said those should be addressed separately.
“Fiscal discipline and accountability are important, but they cannot justify abandoning funds legally designated for PhilHealth,” she added. “This is about upholding the law and protecting the rights of millions of Filipinos who rely on PhilHealth coverage.”IMT
