Official Website of Philippine Senator Pia Cayetano

Category: Sin Tax

  • Sen. Pia: Corruption, Flood Control Anomalies threaten PH Economy

    Sen. Pia: Corruption, Flood Control Anomalies threaten PH Economy

    NEWS RELEASE
    NOVEMBER 13, 2025

    Wednesday (November 13) – Senator Pia S. Cayetano raised the alarm over persistent corruption in government agencies, warning that schemes such as ghost flood control projects not only waste public funds, but also undermine taxpayer confidence, discourage investments, and ultimately slow the country’s economic growth.

    Cayetano, who chairs the Senate Committee on Ways and Means, led a public hearing on Tuesday (November 12) to assess the performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), the government’s key revenue-generating agencies.

    Former BIR Commissioner Romeo Lumagui, Jr. earlier admitted that the agency is short of P897 billion to meet its P3.219-trillion collection target for 2025 amid a slowdown in government spending triggered by recent flood control scandals. 

    Cayetano said the situation reflects how graft and corruption creates a vicious cycle that not only drains the country’s resources, but also erodes public and investor confidence, leading to weaker revenues, fewer investments, and slower job creation for Filipinos.

    “Sadly, we are in a situation where, as we try to help people understand where their taxes should go – on education or health services – they instead hear these stories of graft and corruption. Sino bang hindi malulungkot? Sino pa bang gaganahan to pay their taxes? Sinong investor pa ang gustong maglagay ng pera dito sa atin,” the Senator stressed during the hearing.

    “The challenge before us is to ensure that our revenue system remains equitable, efficient, and responsive to the needs of the Filipino people,” she added.

    Cayetano further noted that during her consultations for the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which she sponsored, business groups and investors repeatedly cited persistent corruption as a major deterrent to investing in the Philippines.

    She emphasized that tackling these issues requires both strong enforcement and legislative support to strengthen government systems, improve transparency, and restore confidence among taxpayers and investors.

    The Senator stressed that addressing corruption and loopholes in government agencies also involves investing in the right technology to improve monitoring and close gaps in existing procedures.

  • Cayetano raises Sin Tax revenue concerns in Universal Healthcare Interpellation

    Cayetano raises Sin Tax revenue concerns in Universal Healthcare Interpellation

    Senator Pia S. Cayetano, in her interpellation on Sen. JV Ejercito’s privilege speech on the Universal Healthcare program, explained how the risk-sharing scheme under PhilHealth’s YAKAP package works. She explained how P1,700 per person is pooled for an entire community and spent according to members’ varying health needs, “similar to how an HMO works.” The senator also cited the model of a U.S.-based HMO, Kaiser Permanente, which rewards members for engaging in healthy activities, noting that “the aim is to keep people healthy before they become patients.”

    FInally, Cayetano raised the failure to appropriate the earmarked sin tax revenues to PhilHealth. “For 2025, P69.81 billion ang sin tax collection para sa PhilHealth, pero ang pumasok sa GAA is zero,” she said, adding that she will file as an intervenor in the pending Supreme Court case. “Kaya natin inearmark yon dahil nga yung mga bisyo na nakakasama sa tao, sana man lang may nakukuha doon pambayad sa gamot nila. Tapos hindi natin nakukuha.”