THE House of Representatives on Wednesday approved on second reading a bill exempting critical medical supplies, including medical oxygen, from taxes.
Through viva voce voting, lawmakers passed House Bill (HB) 8895 or the proposed Public Health Emergency Importation Tax Exemption Act, which exempts critical medical products, essential goods, equipment, input and raw materials necessary during public health emergencies from value-added tax (VAT), import duties and other government fees and by private firms, government instrumentalities and local and national governments.
HB 8895 seeks to ensure and protect the health and safety of the people by adopting mechanisms that would enhance the State’s capacity to address threats to the health security of the citizenry.
The bill is expected to be approved on third and final reading next week.
The bill mandates the Secretary of Health and Secretary of Finance 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.
Essential goods refer to personal protective equipment (PPE) such as: gloves, gowns, masks, goggles and face shields; surgical equipment and supplies; laboratory equipment and its reagents; medical equipment and devices; support and maintenance for laboratory and medical equipment, surgical equipment and supplies; medical supplies, tools, and consumables such as alcohols, sanitizers, tissue papers, thermometers, hand soaps, detergents, sodium hypochlorite, cleaning materials, povidone iodine; testing kits; and, such other supplies or equipment as may be determined by the Department of Health and other relevant government agencies.
The bill said the Secretary of Finance, upon the recommendation of the Secretary of Health and the Secretary of Trade and Industry, may also suspend the threshold on required export sales for availment of privileges under Title XIII of the National Internal Revenue Code of 1997, to allow manufacturers to sell to the domestic market.