Senator Pia Cayetano on Sunday, June 15 expressed strong support for calls to uphold the mandatory allocation of sin tax revenues to the Philippine Health Insurance Corp. (PhilHealth) following the agency’s zero budget in the 2025 national appropriations.

Cayetano joined the call after a petition was filed before the Supreme Court questioning the same by the Medical Action Group and Social Watch Philippines.

The groups asserted that the government violated Republic Act 11346 or the Act Increasing the Excise Tax on Tobacco Producs by failing to allocate earmarked revenues from sin taxes for PhilHealth.

The groups are also seeking the remittance of unaccounted shares dating back to 2019.

“The sin tax law is clear,: A portion of revenues from tobacco and sugar sweetened beverages must go to PhilHealth to fund the delivery of healthcare services to the Filipino people,” said Cayetano.

“Ignoring this is a violation of the law and a disservice to our most vulnerable sectors,” she said.

Cayetano recalled that during the deliberations on the PhilHealth’s proposed 2025 budget last year, concerns over the failure of the government to comply with the mandates of the Sin Tax law were already raised.

At least ₱69.81-billion from sin taxes should have already been allocated to PhilHealth that year, according to the senator.

She also signed the bicameral report of the 2025 General Appropriations Act (GAA) with reservations, citing her “objection to the removal of government subsidy for PhilHealth.”

“PhilHealth's accumulation of excess funds is an equally important issue, but it should be addressed separately. Fiscal discipline and accountability are important, but they cannot justify abandoning funds legally designated for PhilHealth,” she argued.

“This is about upholding the law and protecting the rights of millions of Filipinos who rely on PhilHealth coverage,” the lawmaker stressed.