Tax fraud hurts poor, says DOH

Health Secretary Paulyn Jean Rosell-Ubial INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE

The tax deficiencies of tobacco firm Mighty Corp. have a direct effect on the poor, according to Health Secretary Paulyn Ubial.

Ubial told reporters in a briefing that the unpaid taxes of the tobacco firm were causing not only economic losses to the government, but were having a direct impact on the delivery of health services to the needy.

“These unpaid taxes could have been earmarked to procure medicines and pay for the medical treatment of poor Filipinos who are most affected by smoking-related diseases,” Ubial said.

“The inspections of the Bureau of Customs recently exposed the tax anomaly of this homegrown cigarette firm by using fake excise stamps on cigarette packs costing government P9.56 billion of additional tax revenue,” she said.

“This has an imminent depressing impact on government funds to healthcare services that are beneficial to the poor,” she added.

Government revenue from tobacco products, part of the so-called sin taxes, goes to healthcare services as provided for by the Sin Tax Reform Law or Republic Act No. 10351.

The Department of Health and the Department of Finance collect excise taxes from tobacco products that should go to the Universal Health Care program of the government.