Government keen to give tax relief for medical oxygen-makers


THE government is preparing to provide tax relief to manufacturers of medical oxygen as it expects a surge in demand alongside increasing number of Covid-19 cases.

During his public address last Monday, President Duterte announced he wants to provide tax relief for manufacturers of medical oxygen.

The measure is expected to encourage manufacturers to ramp up production.

Duterte noted the ample supply of medical oxygen will be crucial for government’s response on the rising Covid-19 infections. The president said he will talk to Congress to push for the tax relief as a legislative priority.

Presidential Spokesman Harry L. Roque said government’s economic managers are working on the tax-relief package and the exact figure they would quote to Congress.

“I am sure with the level of cooperation being extended by Congress, the law will be swiftly be passed into law,” Roque said.

Since the start of the implementation of the enhanced community quarantine in Metro Manila last Friday, over 8,000 new Covid-19 cases per day were registered by the Department of Health. The increasing number of cases has raised concerns if the health system can address health facilities and supply issues.

Last week, Trade Secretary Ramon M. Lopez they are encouraging the country’s four oxygen manufacturers to expand their current capacities. The total capacity for medical and industrial oxygen is currently 603 tons per day, Lopez said. (See

Lopez said that current industry capacity is about three times more than the demand in the country. He said producers have not yet increased prices amid the surplus on the production side.

“The current capacity surplus includes both the medical and industrial oxygen capacity, and the latter can also be allocated to produce medical oxygen if and when necessary,” he said.

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