Bohol to get P945M share from sin taxes

Rep. Erico B. Aumentado

By JUNE S. BLANCO

BOHOL stands to get P945 million – or P315 million for each district – as share from “sin taxes” once House Bill 5727 is approved.

Rep. Erico Aumentado (2nd District, Bohol) who co-authored the bill said the amount is its share for the Universal Health Care (UHC) program alone and does not include yet the allocations for new school buildings and additional teacher-items. This means PhilHealth coverage especially for the marginalized will be expanded further.

He said the Department of Finance and Health Secretary Enrique Ona came up with the estimate from the P33-billion total expected to be generated through the proposed measure.

Aumentado was the first solon to file a version of the bill – now consolidated with the administration version.

Since the sin taxes will hike the prices of tobacco and liquor, in a way these will reduce the prevalence of smoking as well as smoking-related disease burden estimated at P177.2 billion in 2011, he explained.

The increased revenues will strengthen fiscal and macroeconomic health, improve credit and investment grade rating as well as infrastructure and social services. The sin taxes can construct more school buildings, hire new teachers, and provide computers with internet for the Information and Communications Technology (ICT) program for students and teachers in support of the K plus 12 program of the Department of Education (DepEd).

The solon also said the tobacco taxes will reduce the number of young smokers. Likewise, reforms under this bill will protect the poor who suffer the brunt of smoking-related diseases. To note, majority of the 300,000 Filipinos who die every year of sicknesses like cancer come from the poor.

He observed that four out of 10 of the poorest 20 percent of Filipino adults are current smokers compared to only one of four of the richest 20 percent who smoke regularly.

Besides, he added, the tobacco farmers will get earmarked funds equivalent to 15 percent of the incremental revenues from tobacco taxes for alternative livelihood and safety nets. Leveling the playing field will erode the power to dictate the price for the tobacco farmers’ produce and will mean better prices for them, he explained.

Aumentado also said the new revenues will increase the resources of local governments congressional districts for PhilHealth and other health programs.

He said the reforms spell long-term prosperity – stem the silent epidemic of smoking and alcohol-related diseases and deaths, improve the lives and capabilities of the nation’s work force, enhance the quality of governance and enable long-term inclusive growth.