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Dedicated Tax System


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Presented by HealthJustice Executive Director Atty. Deborah Sy

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Dedicated Tax System

  1. 1. 5/11/10 Dedicated Tax System Dedicated tax system RA 7171 RA 9334 Law An Act to Promote the Development of An Act Increasing the Excise Tax Farmers in the Virginia-Tobacco Rates Imposed on Alcohol and Producing Provinces Tobacco Products Source of Fund 15% of the excise taxes collected in 2.5% of the incremental revenue locally manufactured Virginia-type from excise tax on alcohol and cigarettes tobacco products (DOH) 2.5% of the incremental revenue from excise tax on alcohol and tobacco products (PhilHealth) Administrator LGUs of Virginia Tobacco-Producing DOH Provinces Philhealth Purpose financial assistance for developmental DOH – disease prevention projects to be implemented by the programs local governments such as cooperative projects, livelihood projects and agro- PhilHealth – meeting and industrial projects. sustaining the goal of universal coverage of the Natl Health Insurance Program 2 1
  2. 2. 5/11/10 •  RA 7171 – GMA ordered the release of P6.37 Billion tobacco excise tax to LGUs •  DOH – Not yet received any fund; estimated in 2008 to be P300 Million 3 Disease Prevention Program of the DOH •  Healthy Lifestyle programs –  Tobacco Control Program –  Lifestyle Physical Activity Program –  Healthy Diet and Weight Control Program –  Stress Management Program –  Control of Alcohol Use Program 4 2
  3. 3. 5/11/10 Other examples of dedicated fund Law Funding Purpose Management mechanism RA 8794 Motor Vehicle User’s Improvement of roads; air Road Board Charge (MVUC) on pollution control; installation of Act imposing Motor every motor vehicle adequate and efficient traffic Appointed by the President Vehice Users Charge lights and road safety devices (4 FROM GOVT - Sec of the (Different rates per DPWH, DOF, DBM, DOTC;) (Special Road Support type of vehicle) 3 from transport and motorist Fund; Special Local organization (appointed for Support Fund; Special terms of two years each) Vehicle Pollution Control Fund) RA 7662 60% of the privilege Special endowment fund for Legal education board tax paid by every purposes of the law (attached tp education dept) lawyer effective 1994; including the support for Legal Education Reform 10M annually from faculty development grants, Chairman (pref former Act of 1993 Dep Ed for 10 years; professorial chairs, library Justice) 1 M from current improvements and similar Regular members (reps from year’s appropriation ; programs for the IBP, PALS, active law donations, legacies advancement of law practitioner, law students’ etc teaching and education in sector; sec of DepEd) accredited law schools 5 Other examples of dedicated fund Law Source of Fund Purpose Management EO 297 Environmental Users Fee is For polluters to internalize the cost of Board of Directors – Empowering collected from damage and encourage reduction of reps from OP, Sec of LLDA to establishments, industries or waste DTI, DENR, Rep from collect EUF business firms for damage Laguna Province, inflicted to the Laguna de Bay To refinance important activities such MMDA, NEDA, Rizal Regions as monitoring of industries discharges Province, Laguna and better enforcement of user fees Lake Fed of Mayors, RA 8749 Fines imposed and damages To finance containment, removal and Department of awarded to the Philippines by clean-up operations of the Government Environment and Clean Air Act the Pollution Adjudication in air pollution cases, guarantee Natural Resources Board, proceeds of license restoration of ecosystem and (Sec. 14 Air and permits issued by DENR rehabilitate areas affected by the acts Quality of violators, to support research, Management enforcement and monitoring activities Fund) and capabilities of the relevant agencies RA 3870 Legal Research Fund To provide support to the UP Law UP Law Center Center Act defining A portion of the filing fees for the functions cases filed in court To cover the expenses in publishing of the UP Law and distribution to gov’t of the survey Center of phil law and jurisprudence and proceedings of the judicial conferences 6 PD 200 Additional amount of 1% of the filing fee imposed in all cases filed in courts 3
  4. 4. 5/11/10 Typical types of funding and institutions •  Funding – fee or imposition from users, which will be used to financed the programs of the institutions •  Institutions – Existing government agencies or especially created by the law 7 Other forms of funding Law Funding Purpose Management Mechanism RA 9521 (2009) 50 M from GAA for the Grants to National Book Development Board next five years promote Filipino (under the Office of the Pres; 11 National Book Development 50 M from PAGCOR for authorship and members appointed by the Pres Trust Fund Act the next 10 months; to support 50 M from PCSO for the completion of 5 reps from gov’t (DECS, DTI, next 10 months; donations local DOST, NCCA, CHED, TESDA) and conveyances manuscripts or research work 6 reps from nominees of orgs of for publication private book publishers, printers, writers, book industry-related activities) RA 8423 50 M in the first year and Exclusively used Philippine Institute of Traditional and Traditional and Alternative 75 M for the 2nd year 100 for programs and Alternative Health Care (attached Medicine Act of 1997 M for the 3rd year from the projects of the agency of the DOH) earnings of Duty Free Institute (Health Sec, reps from DOST, Philippines; thereafter, the DENR, DA, DECS, CHED funding shall be sourced 1 physician engaged in the practice from GAA of traditional and alternative health care, 1 from academe/research institution, 1 traditional and health care practitioner who is not a physician 8 4
  5. 5. 5/11/10 Other forms of funding Law Source of Funds Purpose Management RA 9275 Initial implementation - To fund the Department of Environmental and 100 M shall be programs Natural Resources Phil. Clean Water Act of appropriated from the outlined in the 2004 savings of the National law Government; Thereafter, the amount necessary shall be included in the GAA RA 8980 400 M per year for 5 To fund the National Coordinating Council and years shall come from programs Coordinating Committees for ECCD Early Childhood Care and PAGCOR. Thereafter, the outlined in the (Council of the Welfare of Children) development Act amounts needed shall be law included in the GAA; Composition (existing members of Supplemental CWC, 2 ECCD practitioners and appropriation of 30 M experts, Secretaries of DSWD, shall be provided from DECS, DOH and DILG Pres. Organizational Adjustment Fund CWC members – Reps from DSWD, DEPED,DOH, DOLE,DOJ, DILG,DA,NEDA, Nutrition Council 9 Law Funding Purpose Management Mechanism RA 9064 The amount Cash incentives and Phil. Sports Sports Benefits and necessary shall be retirement benefits Commission Incentives Act of 2001 taken from the net program of national cash income of the athletes, coaches and PAGCOR to be trainers remitted directly as a special account of the National Sports Development Fund 10 5
  6. 6. 5/11/10 Other forms of funding •  Funds are sourced from the government appropriations and/or other government institutions •  Institutions – Existing government agency or especially created by law, attached to the gov’t agency, carrying specific purposes under the law 11 Dedicated taxes for Health Promotion •  Best Practices –  Independent and free from political influence –  Sustainable funding (ex. Motor Vehicle Users Charge, UP Law Center Fund) –  Clear guidelines on organizational accountability (ex. Clean Air Act- Report to Congress, Joint Congressional Monitoring Committee) –  Comprehensive programs and strategies (Clean Water Act) 12 6