Section 14Sec./Art. 14

A new section designated as Section 288-A under Chapter II, Title XI of the National Internal Revenue Code of 1997, as amended, is hereby inserted and shall be read as follows:

"Sec. 288-A. Disposition of Revenues from Excise Tax on Sugar-Sweetened Beverages, Alcohol, Tobacco Products, Heated Tobacco Products, and Vapor Products.

"(A) Revenues from Excise Tax on Sugar-Sweetened Beverages from Republic Act No. 10963. -The provisions of existing laws to the contrary notwithstanding, fifty percent (50%) of the total revenues collected from the excise tax on sugar-sweetened beverages shall be allocated and used exclusively in the following manner:

"(1) Eighty percent (80%) to the Philippine Health Insurance Corporation (PhilHealth) for the implementation of Republic Act No. 11223, otherwise known as the Universal Health Care Act of 2019; and

"(2) Twenty percent (20%) shall be allocated nationwide, based on political and district-subdivisions, for medical assistance, the Health Facilities Enhancement Program (HFEP), the annual requirements of which shall be determined by the Department of Health (DOH).

"(B) Revenues from Excise Tax on Alcohol Products. -The provisions of existing laws to the contrary notwithstanding, fifty percent (50%) of the total revenues collected from the excise tax on alcohol products shall be allocated and used exclusively in the following manner:

"(1) Eighty percent (80%) to PhilHealth for the implementation of Republic Act No. 11223, otherwise known as the Universal Health Care Act of 2019; and

"(2) Twenty percent (20%) shall be allocated nationwide, based on political and district subdivisions, for medical assistance, the Health Facilities Enhancement Program (HFEP), the annual requirements of which shall be determined by the DOH;

"(C) Revenues from Excise Tax on Tobacco Products. The provisions of existing laws to the contrary notwithstanding, the total revenues collected from the excise tax on tobacco products shall be distributed in the following manner:

"(1) An annual amount equivalent to five percent (5%) of the revenue collection from excise tax on tobacco products, but not exceeding Four billion pesos (₱4,000,000,000.00) shall be allocated and divided among the provinces producing burley and native tobacco in accordance with the volume of tobacco leaf production.

"The respective shares of the local government units of a beneficiary province under this Section shall be distributed as follows:

"(i) Fifty percent (50%) shall be allocated to the provincial government of the beneficiary province; and

"(ii) Fifty percent (50%) shall be proportionately allocated to the municipalities and cities of the beneficiary province on the basis of the volume of then-respective tobacco production.

"The fund shall be exclusively utilized for programs to promote economically viable alternatives for tobacco farmers and workers such as:

"(a) Programs that will provide inputs, training, and other support for tobacco farmers who shift to production of agricultural products other than tobacco including, but not limited to, high-value crops, spices, rice, corn, sugarcane, coconut, livestock and fisheries;

"(b) Programs that will provide financial support for tobacco farmers who are displaced or who cease to produce tobacco;

"(c) Cooperative programs to assist tobacco farmers in p [anting alternative crops or implementing other livelihood projects:

"(d) Livelihood programs and projects that will promote, enhance, and develop the tourism potential of tobacco-growing provinces;

"(e) Infrastructure projects such as farm-to-market roads, bridges, schools, hospitals, rural health facilities and irrigation systems; and

"(f) Agro-industrial projects that will enable tobacco farmers to be involved in the management and subsequent ownership of projects, such as post-harvest and secondary processing like cigarette-manufacturing and by-product utilization.

"(2) Fifty percent (50%) of the total excise tax collection from tobacco products shall be allocated and used exclusively in the following manner:

"(a) Eighty percent (80%) to PhilHealth for the implementation of Republic Act No. 11223, otherwise known as the Universal Health Care Act of 2019; and

"(b) Twenty percent (20%) shall be allocated nationwide, based on political and district subdivisions, for medical assistance, the Health Facilities Enhancement Program (HFEP), the annual requirements of which shall be determined by the DOH; and

"(D) Revenues from Excise Tax on Heated Tobacco Products and Vapor Products. The provisions of existing laws to the contrary notwithstanding, the total revenues collected from the excise tax on heated tobacco products and vapor products shall be allocated and used exclusively in the following manner:

"(1) Eighty percent (80%) to PhilHealth for the implementation of Republic Act No. 11223, otherwise known as the Universal Health Care Act of 2019; and;

"(2) Twenty percent (20%) shall be allocated nationwide, based on political and district subdivisions, for medical assistance and the Health Facilities Enhancement Program (HFEP), the annual requirements of which shall be determined by the DOH;

"Provided, That the Department of Budget and Management (DBM), in consultation with the Department of Agriculture and National Tobacco Administration, shall issue rules and regulations governing the allocation and disbursement of the fund allocated to tobacco-producing provinces, not later than one hundred eighty (180) days from the effectivity of this Act.

"Provided, further, That the allocation for Universal Health Care shall be based on the collection of the second fiscal year preceding the current fiscal year."