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Dedicated Tax System

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Dedicated tax system RA 7171 RA 9334

Law An Act to Promote the Development of Farmers in the Virginia-Tobacco Producing Provinces

An Act Increasing the Excise Tax Rates Imposed on Alcohol and Tobacco Products

Source of Fund 15% of the excise taxes collected in locally manufactured Virginia-type cigarettes

2.5% of the incremental revenue from excise tax on alcohol and tobacco products (DOH) 2.5% of the incremental revenue from excise tax on alcohol and tobacco products (PhilHealth)

Administrator LGUs of Virginia Tobacco-Producing Provinces

DOH Philhealth

Purpose financial assistance for developmental projects to be implemented by the local governments such as cooperative projects, livelihood projects and agro-industrial projects.

DOH – disease prevention programs

PhilHealth – meeting and sustaining the goal of universal coverage of the Natl Health Insurance Program

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•  RA 7171 – GMA ordered the release of P6.37 Billion tobacco excise tax to LGUs

•  DOH – Not yet received any fund; estimated in 2008 to be P300 Million

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Disease Prevention Program of the DOH •  Healthy Lifestyle programs

–  Tobacco Control Program –  Lifestyle Physical Activity Program –  Healthy Diet and Weight Control Program –  Stress Management Program –  Control of Alcohol Use Program

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Other examples of dedicated fund

Law Funding mechanism

Purpose Management

RA 8794

Act imposing Motor Vehice Users Charge

(Special Road Support Fund; Special Local Support Fund; Special Vehicle Pollution Control Fund)

Motor Vehicle User’s Charge (MVUC) on every motor vehicle

(Different rates per type of vehicle)

Improvement of roads; air pollution control; installation of adequate and efficient traffic lights and road safety devices

Road Board

Appointed by the President (4 FROM GOVT - Sec of the DPWH, DOF, DBM, DOTC;) 3 from transport and motorist organization (appointed for terms of two years each)

RA 7662

Legal Education Reform Act of 1993

60% of the privilege tax paid by every lawyer effective 1994; 10M annually from Dep Ed for 10 years; 1 M from current year’s appropriation ; donations, legacies etc

Special endowment fund for purposes of the law including the support for faculty development grants, professorial chairs, library improvements and similar programs for the advancement of law teaching and education in accredited law schools

Legal education board (attached tp education dept)

Chairman (pref former Justice) Regular members (reps from IBP, PALS, active law practitioner, law students’ sector; sec of DepEd)

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Other examples of dedicated fund

Law Source of Fund Purpose Management

EO 297 Empowering LLDA to collect EUF

Environmental Users Fee is collected from establishments, industries or business firms for damage inflicted to the Laguna de Bay Regions

For polluters to internalize the cost of damage and encourage reduction of waste

To refinance important activities such as monitoring of industries discharges and better enforcement of user fees

Board of Directors – reps from OP, Sec of DTI, DENR, Rep from Laguna Province, MMDA, NEDA, Rizal Province, Laguna Lake Fed of Mayors,

RA 8749

Clean Air Act

(Sec. 14 Air Quality Management Fund)

Fines imposed and damages awarded to the Philippines by the Pollution Adjudication Board, proceeds of license and permits issued by DENR

To finance containment, removal and clean-up operations of the Government in air pollution cases, guarantee restoration of ecosystem and rehabilitate areas affected by the acts of violators, to support research, enforcement and monitoring activities and capabilities of the relevant agencies

Department of Environment and Natural Resources

RA 3870

Act defining the functions of the UP Law Center

PD 200

Legal Research Fund

A portion of the filing fees for cases filed in court

Additional amount of 1% of the filing fee imposed in all cases filed in courts

To provide support to the UP Law Center

To cover the expenses in publishing and distribution to gov’t of the survey of phil law and jurisprudence and proceedings of the judicial conferences

UP Law Center

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Typical types of funding and institutions

•  Funding – fee or imposition from users, which will be used to financed the programs of the institutions

•  Institutions – Existing government agencies or especially created by the law

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Other forms of funding Law Funding

Mechanism Purpose Management

RA 9521 (2009)

National Book Development Trust Fund Act

50 M from GAA for the next five years 50 M from PAGCOR for the next 10 months; 50 M from PCSO for the next 10 months; donations and conveyances

Grants to promote Filipino authorship and to support completion of local manuscripts or research work for publication

National Book Development Board (under the Office of the Pres; 11 members appointed by the Pres

5 reps from gov’t (DECS, DTI, DOST, NCCA, CHED, TESDA)

6 reps from nominees of orgs of private book publishers, printers, writers, book industry-related activities)

RA 8423 Traditional and Alternative Medicine Act of 1997

50 M in the first year and 75 M for the 2nd year 100 M for the 3rd year from the earnings of Duty Free Philippines; thereafter, the funding shall be sourced from GAA

Exclusively used for programs and projects of the Institute

Philippine Institute of Traditional and Alternative Health Care (attached agency of the DOH) (Health Sec, reps from DOST, DENR, DA, DECS, CHED 1 physician engaged in the practice of traditional and alternative health care, 1 from academe/research institution, 1 traditional and health care practitioner who is not a physician

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Other forms of funding Law Source of Funds Purpose Management

RA 9275

Phil. Clean Water Act of 2004

Initial implementation - 100 M shall be appropriated from the savings of the National Government; Thereafter, the amount necessary shall be included in the GAA

To fund the programs outlined in the law

Department of Environmental and Natural Resources

RA 8980

Early Childhood Care and development Act

400 M per year for 5 years shall come from PAGCOR. Thereafter, the amounts needed shall be included in the GAA; Supplemental appropriation of 30 M shall be provided from Pres. Organizational Adjustment Fund

To fund the programs outlined in the law

National Coordinating Council and Coordinating Committees for ECCD (Council of the Welfare of Children)

Composition (existing members of CWC, 2 ECCD practitioners and experts, Secretaries of DSWD, DECS, DOH and DILG

CWC members – Reps from DSWD, DEPED,DOH, DOLE,DOJ, DILG,DA,NEDA, Nutrition Council

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Law Funding Mechanism

Purpose Management

RA 9064 Sports Benefits and Incentives Act of 2001

The amount necessary shall be taken from the net cash income of the PAGCOR to be remitted directly as a special account of the National Sports Development Fund

Cash incentives and retirement benefits program of national athletes, coaches and trainers

Phil. Sports Commission

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Other forms of funding

•  Funds are sourced from the government appropriations and/or other government institutions

•  Institutions – Existing government agency or especially created by law, attached to the gov’t agency, carrying specific purposes under the law

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Dedicated taxes for Health Promotion

•  Best Practices –  Independent and free from political

influence –  Sustainable funding (ex. Motor Vehicle

Users Charge, UP Law Center Fund) –  Clear guidelines on organizational

accountability (ex. Clean Air Act- Report to Congress, Joint Congressional Monitoring Committee)

–  Comprehensive programs and strategies (Clean Water Act)