The document discusses the implementation and impact of the Sin Tax Reform Act of 2012, which aims to reduce the consumption of tobacco and alcohol by increasing their taxes and redistributing generated revenue towards health programs. Specific allocations include funding for universal health care, medical assistance, and health promotion, with substantial portions derived from the incremental budget generated by sin taxes. The report highlights improvements in health outcomes related to smoking and alcohol consumption among the Filipino population, backed by financial data and the allocation of resources for various health initiatives.

1. Utilization of
Sin Tax

2. Background
Sin Tax Allocation by Programs,
Activities and Projects in the 2015
GAA
Allocation for Universal Health Care,
Medical Assistance Program and Health
Enhancement Facilities Program
Sin Tax Incremental Budget in the 2016
DOH Budget Proposal

3. Republic Act (RA) 10351 or
the Sin Tax Reform Act of 2012
enacted with an objective of reforming the
taxes for tobacco and alcohol products,
increasing the taxes thereof, and as a
consequence, decrease the prevalence of
smoking and alcohol related abuse among
the youth and poor, and related morbidity &
mortality

4. • This law restructured the existing taxes on
tobacco and alcohol products generating
additional revenues thereof, where 85% of
the additional revenue is intended for
health.

5. Department of Health
 Joint Circular 001-2014, known as the
Implementing Rules and Regulation of
RA 10351
 Identified as the main agency to compute
allocation of Sin Tax earmarked for health
to different health programs. This is a
detailed report on expenditures of the
amounts earmarked for health

6. • Removal of the price/brand
classification freeze
The proper tax classification of alcohol
and tobacco products will be determined
every two (2) years.
Briefer on the Sin Tax Law

7. Structure
• Gradual shift to a unitary taxation
This is to simplify the current multi-tiered structure, to prevent downshifting to lowerpriced brands, to discourage
consumption of sin products, and for easy tax administration.
Source:www.dof.gov.ph/wp-content/.../Briefer-on-Sin-Tax-Law-FINAL.pdf

8. • the Bureau of Internal Revenue reveal a
higher actual Sin Tax collection for the
said years, thus leaving a balance of PhP
14.22 B from collections in 2013, and PhP
9.12 B from 2014, resulting to a total
balance of PhP 23.34 B.

11. Allocations for Universal Health Care, Medical
Assistance Program and Health Enhancement
Facilities Program

13. A. Universal Health Care
i. Financial Risk
Protection
iv. Access to Quality Health
Services
ii. Attainment of Health
Related MDG
iii. Health Awareness

14. A. Universal Health Care
i. Financial Risk
Protection
-73% or PhP24.56 B of the total Sin Tax incremental revenue
for health
-constitutes 66% of the total NHIP budget for 2015 the
-As of the second quarter of 2015, PhilHealth covers 45.41 M
identified poor Filipinos, comprised of 15.28 M principal
members in the National Household Targeting System for
Poverty Reduction (NHTS-PR) list, and their 30.12M
Dependents
NHIP

15. A. Universal Health Care
ii. Attainment of Health
Related MDG
Non-Communicable
Diseases and Health
Promotion
PhP 586 M
- 88% is funded from the
Sin Tax Incremental
budget
Infectious Diseases
PhP 2.27 B
35% is funded from the
Sin Tax Incremental
budget
Elimination of Diseases
(Malaria,
Schistosomiasis,
Leprosy, & Filariasis)
PhP 788 M
28% is funded from the
Sin Tax Incremental
budget

16. A. Universal Health Care
ii. Attainment of Health
Related MDG
Expanded Program on
Immunization
PhP 3.34 B
42% is funded from the
Sin tax Incremental
Budget
Environmental Health
and Occupational Health
Program

17. A. Universal Health Care
-allocated PhP 167 M, of which 3% is funded from
Incremental budget
-Tobacco control is one of the primary programs in
health promotion.
-Other programs: alcohol abuse, diet, and lack of
physical activity.
iii. Health Awareness
The National Nutrition Survey 2013
-Filipino adults aged 20 years old and above, decreased from
31% in 2008 to 25.4% in 2013
-Smoking among children or those aged below 20 years old
also decreased from 9.1% in 2008 to 6.8% in 2013
-This prevalence projects a decrease of smokers from 16.5 M
to 13.5M, and 3.7M to 2.7M2 smoking adults and youth,

18. A. Universal Health Care
iv. Access to Quality Health Services
1. HRH DEPLOYMENT (DOCTORS, NURSES, MIDWIVES,
OTHER HEALTH PROFESSIONALS)
- PhP4.26 B, of which 32% or PhP1.38 B is funded from
the Sin Tax incremental revenue for health
2. Hospital Operations
- PhP 12.28 B, of which 11% or PhP 1.33 B is funded
by the Sin Tax incremental budget
3. Quick Response Fund
- PhP 500 M, with funding source coming only from
the Sin tax incremental fund
-

19. B. Medical Assistance Program
allocated a total of PhP 2.72 B in the 2015
Budget, PhP 1.85 B or 68% of which will
be utilized for the grant of medical
assistance to indigent and poor patients
in government hospitals and the other
PhP 874 M or 32% for the provision of
medicines.

20. Sin Tax Incremental Budget in
the 2016 DOH Budget Proposal