House OKs tax exemption for med supplies, oxygen

MANILA, Philippines — With an overwhelming 202 votes, the House of Representatives approved on third and final reading a bill that will exempt medical oxygen, along with other critical medical supplies, from taxes during the pandemic.

House Bill 8895 or the Public Health Emergency Importation Tax Exemption Act, which President Duterte requested both houses of Congress to pass, exempts the manufacture, importation, sale, and donation of critical medical supplies and essential goods during public health emergencies.

“We thank the House leadership, under Speaker Lord Allan Velasco, for passing this presidential request urgently. The unanimity of the House in approving this measure shows our intent to help our medical frontliners with good policy. The bill comes at a good time when we are in need of these critical supplies. This end-to-end exemption will help bolster our stock of critical supplies, such as medical oxygen,” Albay Rep. Joey Salceda said.

The bill, principally authored by deputy speaker and Cagayan de Oro Rep. Rufus Rodriguez, would provide government agencies and private firms exemption from payment of value-added tax (VAT), customs duties and other fees in the importation of critical medical products and essential goods during public health emergencies, such as the current COVID-19 pandemic.

Under the bill, the Bureau of Customs in consultation with other concerned agencies would be mandated to formulate liberalized procedures to expedite the entry of these supplies. It also mandates the Secretary of Health and Secretary of Finance to draw up the list of goods subject to exemption.

Rodriguez explained that the measure seeks to minimize barriers that impede the country’s capacity to cope with health crises.

Muntinlupa City Rep. Ruffy Biazon, the original author, lauded the bill’s approval. “Public health emergencies, particularly those caused by contagions, can and will happen again. It is no longer a matter of if, but a matter of when. I am therefore extremely pleased with, and grateful to, my House colleagues,” he said.

“Because if there is any lesson that we have learned in this pandemic, it is that the immediate availability of these supplies and products is crucial in containing the spread of the disease,” the former Customs commissioner remarked.

Last month, the Salceda committee gave its go signal to the proposed substitute provisions to the bill exempting critical medical supplies, including medical oxygen, “from any and all taxes,” following a request from Duterte for Congress to pass such a measure.

The substitute bill exempts the manufacture, importation, sale and donation of critical medical supplies and essential goods during public health emergencies.

The bill mandates the health and finance secretaries to draw up the list of goods subject to exemption. The exemptions will require the declaration of a public health emergency by the President after December 2023, but will be in effect until then.

Critical medical products refer to vaccines and other necessary medicines to contain public health emergencies. – Edu Punay