The bicameral conference committee has approved an additional ₱16.52 billion in the proposed 2026 national budget to fully cover PhilHealth’s Sin Tax allocation, responding to persistent calls from Senator Pia Cayetano to comply with the law and ensure funding for universal health care.
Under the Sin Tax Reform Law, revenues from excise taxes on tobacco, alcohol, and other “sin” products are primarily earmarked for health programs, with a significant portion allocated to the Philippine Health Insurance Corporation (PhilHealth).
For 2026, PhilHealth’s mandated share is ₱69.78 billion. Only ₱53.26 billion had been initially included in the National Expenditure Program (NEP), leaving a ₱16.52 billion shortfall.
Cayetano said she raised the issue during budget hearings and plenary deliberations, pushing for full funding in the bicameral conference committee.
“The Sin Tax law is unequivocal. These revenues are earmarked for health. The full amount of ₱69.78 billion should have been included in the NEP. But since it was not, by including the ₱16.52 billion, Congress is simply doing its job,” Cayetano said.