The passage of the sin tax bill fulfilled the government’s objective of reaching P40 billion in incremental revenues in the first year and collecting funds to help finance Universal Health Care, Finance Secretary Cesar Purisima said in a statement on Wednesday.

“We congratulate and thank our partners in the Senate, especially our sponsor Senator Frank Drilon, for passing the sin tax bill on third and final reading. We also thank all advocates who have tirelessly pursued this urgent reform, especially those who have done so the past 15 years,” Purisima said.

He added that the version of the bill also provides moderate tax increases to protect the young and the poor from the ill effects of smoking and excessive drinking, achieving a unitary tax rate at P26 per pack with an excise tax burden of 60 percent on tobacco products in the fifth year, close to World Health Organization and World Bank recommended levels.

“While we would have wanted higher tobacco tax increases to maximize our health gains, we understand that we work within the rigors of the legislative process to achieve our reforms,” the Finance secretary stated.

Purisima also said that the Finance department will continue to work closely with its partners in the Congress in the bicameral conference committee to ensure that they optimize the health and revenue gains from this urgent reform agenda of President Benigno Aquino 3rd.

The final version of the sin tax bill was approved by the Senate on Tuesday. On the third reading, 15 senators voted in its favor.

The senators agreed that P23-billion of the total revenue to be collected from the sin tax measure would be allotted annually to the health care program of the government.