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A proposed overhaul of taxes on sweetened products could provide PhilHealth with billions of pesos in additional funding while making sugary drinks more expensive in the coming years.
The Department of Finance estimated that its proposed tax changes could raise about Php 74.78 billion annually, part of which would be earmarked for government health programs.
Finance Undersecretary Karlo Fermin Adriano told lawmakers that PhilHealth could receive an average of about Php 30 billion more each year under the proposal.
The additional allocation for the state health insurer was projected at Php 25.30 billion in 2027 before increasing to Php 28.21 billion in 2028, Php 31.36 billion in 2029 and Php 34.78 billion in 2030.
Another Php 6.33 billion to Php 8.7 billion could be generated annually for medical assistance programs for indigent and financially incapacitated patients and projects aimed at upgrading government health facilities.
At the center of the proposal is a higher excise rate of Php 20 per liter for drinks containing caloric or non-caloric sweeteners. Beverages using high-fructose syrup would face a Php 40-per-liter levy.
The DOF also wants the rates adjusted upward by five percent every year and the tax base widened to include sweetened frozen products such as ice cream, ice lollies and frozen yogurt. Existing rates are Php 6 or Php 12 per liter, depending on the sweetener used.
Finance officials said the measure is intended not only to generate revenue but also to discourage excessive consumption of sugary products amid obesity concerns. The changes remain a proposal and would need congressional approval before they could be implemented.