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Senate bill seeks tax exemption for vaccine donations

Philstar.com

February 11, 2021 | 11:47am

Senate bill seeks tax exemption for vaccine donations

This handout picture taken on August 6, 2020 and provided by the Russian Direct Investment Fund shows the vaccine against the coronavirus disease, developed by the Gamaleya Research Institute of Epidemiology and Microbiology.

Handout / Russian Direct Investment Fund / AFP

MANILA, Philippines — Sen. Sonny Angara wants to exempt products necessary to the mitigation of novel coronavirus, including vaccines, from donor's tax.

Angara filed Senate Bill No. 2046, which would exempt the following items from donor's tax if enacted:

Equipment, spare parts, and raw materials necessary for the production of personal protective equipment (PPE) components, such as:
- coveralls, gown, surgical cap, surgical masks, N-95 mask, scrub suits, goggles and face shield, double or surgical gloves, dedicated shoes and shoe covers
All drugs, vaccines and medical devices specifically prescribed and directly used for the treatment of COVID-19
- Within two months of the bill's enactment, the Department of Health must issue a list of prescription drugs and medical devices covered by this provision
Drugs for the treatment of COVID-19 approved by the Food and Drug Administration for use in clinical trials, including the raw materials directly necessary for the production of such drugs
- Provided that the Department of Trade and Industry certifies that these items are not locally available or insufficient in quantity, or not in accordance with the quality or specification required
Equipment for waste management, including, but not limited to waste segregation, storage, collection, sorting, treatment and disposal services
- As approved by the Department of Environment and Natural Resources, DOH or other concerned regulatory agencies
Other necessary supplies or equipment as determined by the DOH and DTI

"[F]or purposes of the exemption, the donated articles shall not be intended for commercial use and shall be for free distribution to or use for the containment or mitigation of COVID-19," the bill read. Donations that are excepted under the bill, Angara added, will be subject to post-audit by the Bureau of Internal Revenue or the Bureau of Customs.

Why does this matter?

As the government gears up to begin its national vaccination program, lawmakers have tried to course-correct and augment the plan: First, by probing it in both the lower house and the upper chamber, and, now, by seeking ways to cut the red tape around the acquisition of vaccines.
Senate Majority Leader Juan Miguel Zubiri this week filed Senate Bill No. 2042 which seeks to allow "provinces, cities and municipalities [to] directly purchase vaccines for...protection against the coronavirus disease." Currently, local government units may only acquire vaccines through tripartite deals with manufacturers and the national government.
House Speaker Lord Allan Velasco (Marinduque) has filed House Bill 8648, a counterpart measure to Zubiri's bill in the upper chamber.
At a Senate committee on finance hearing on Thursday tackling SB 2042, vaccine czar Carlito Galvez Jr. lauded the effort to expedite vaccines and said he and Health Secretary Francisco Duque III "are now drafting a memorandum for the president to make this bill an urgent bill so that it will be passed immediately."

— Bella Perez-Rubio