Govt To Use 'sin Tax' To Finance Health Scheme

[george]

Govt to use 'sin tax' to finance universal health scheme

BANGKOK: -- The government plans to use money collected from liquor, cigarette and tobacco taxes to finance the 30-baht universal health insurance program.

The premier yesterday called Finance Minster Somkid Jatusripitak, Public Health Minister Sudarat Keruya, and top officials from the Excise Department, the Budget Bureau, and the National Economic and Social Development Board to discuss ways to use proceeds from the so-called “sin tax” to support the government-initiated health insurance scheme.

Deputy Government Spokeswoman Sansanee Nakapong disclosed the premier had instructed the state agencies concerned to work out details on the plan to use the tax to improve and strengthen people’s health.

She said the liquor, cigarette and tobacco had weakened the public health and destroyed environment, causing the state to set aside the budget for health treatment.

So, it was necessary to bring money from taxes collected from the products to offset the shortfall in the budget.

Deputy Prime Minister Visanu Krue-ngam and top officials from the Budget Bureau and the Finance Ministry had been assigned to study whether a law amendment must be made to allow the use of the sin tax.

The premier viewed the appropriation of the tax must be made in a justifiable and transparent manner.

As well, she said, the premier had assigned the Finance Ministry to bring other taxes collected from other products and activities that are detrimental to people’s health and environment such as gambling, massage parlor and nightclub to finance other social contribution projects.

Last year, the Excise Department collected the tax amount of 104 billion baht from the liquor, cigarette and tabacco. It is forecast the department would collect around 119 billion baht this year.

Spending on the 30-baht universal health scheme totaled 62.33 billion baht last year, and is projected to increase to 72.77 billion this year, 81.33 billion next year, and 87.03 billion in 2007.

--TNA 2005-02-16