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Senator Calls For Investigation Into Philippines 'Sin Tax Law' Delay

by Mary Swire, Tax-News.com, Hong Kong

14 January 2009

An investigation has been called for by officials in the Philippines regarding the delayed introduction of a major provision relating to the so-called "Sin Tax Law".

The demand for an investigation into the deferred implementation of part of the law was made by opposition Senator, Panfilo Lacson, who noted his concern about the knock-on effect that the delay was having on the country's Department of Health (DoH).

The law was officially passed in 2004, and sought to increase the taxes levied on alcohol and tobacco products in a bid to expand the funding available to the DoH to develop methods of disease prevention and increase health insurance coverage.

However, according to the Senator, none of the revenue generated from the implementation of the sin tax appears to have been passed over to the country's DoH, as originally planned.

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