MANILA is on its way ahead to push sin tax bill in view to generate incremental revenue for government‘s public health programmes for Universal healthcare programme, adaging that the revenues generated from cigarettes are not enough to cover for tobacco-related health expenditures.

The government slapped ad valorem tax on sin products until it shifted to specific tax in the mid-90s and there has been debate over Ad valorem and specific tax proposal between finance secretary and prime minister and finally decided to drop down proposal of ad valorem scheme in place of specific tax as it would be difficult to administer and would be a nightmare for tax agency.

Introducing the sin tax measure will generate incremental revenues of P31.35 billion in 2013 the first year of implementation.

It is estimated that the total annual cost of the four leading smoking related illnesses - lung cancer, chronic obstructive pulmonary disease, coronary artery disease and cardiovascular disease was P177 billion in 2011 and revenues collected by the government was only P26 billion.

Increasing taxes on alcohol and tobacco products is both a health and revenue issue and increasing the excise tax will make these products more expensive, thus, discouraging the poor and the young to buy them.

The taxes that will be generated from these products after approval of bill will be used to finance the universal health care.