Financing Universal Healthcare and the ASEAN: Focus on the Philippine Sin Tax Law

Abstract

This paper looks at the possible impact of the ASEAN integration in the region as well as the challenges it brings especially on the goal of financing health care. This study analyzes how a reform measure, the sin tax law, imposing tax on cigarettes and alcohol, was passed into law considering its conflicting role of being a revenue measure but at the same time a regulatory and health measure. The new law which supports the goal of achieving universal health care coverage is actually a revenue raising measure considering its nature as a tax law. However, under the present administration’s drive to institute reforms in governance, this policy reform deviates from this nature and seeks to fulfill a social goal of improving not only universal health coverage but also lower tobacco and liquor related health problems among the youth.
Data from other countries was also used in the analysis to see how the present law compares with current and past prices of alcohol, liquor and cigarettes and how international organizations affected the passage of the measure.