Senator Pia S. Cayetano has expressed support for calls to uphold the mandatory allocation of sin tax revenues to PhilHealth, following the agency’s zero budget in the 2025 national appropriations.
A petition was filed before the Supreme Court questioning the same by the Medical Action Group and Social Watch Philippines, which asserts that the government violated Republic Act 11346 by failing to allocate earmarked revenues from sin taxes for PhilHealth. The groups are also seeking the remittance of unaccounted shares dating back to 2019.
“The sin tax law is clear,” Cayetano said. “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.”
During the deliberations on PhilHealth’s 2025 budget, Cayetano, who served as Senior Vice-Chairperson of the Senate Committee on Finance handling the health budget, raised concerns over the failure of the government to comply with the mandates of the Sin Tax law. She noted that at least ₱69.81 billion from sin taxes should have been allocated to PhilHealth that year. She also signed the bicameral report of the 2025 General Appropriations Act with reservations, citing her “objection to the removal of government subsidy for PhilHealth.”
“PhilHealth’s accumulation of excess funds is an equally important issue, but it 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.”
