Senator Pangilinan Proposes Bill Exempting Tax for Local PPE Manufacturers
Senator Francis “Kiko” Pangilinan proposes for immediate passage of a bill exempting tax for local manufacturers of surgical masks, personal protective equipment (PPE) sets, test kits, ventilators, and other medical products necessary for battling the COVID-19 pandemic.
The senator states that Senate Bill (SB) No. 1759 seeks to provide incentives to local manufacturers and producers of critical medical supplies. The bill also mandates the government to prioritize the purchase of locally-made medical supplies.
Pangilinan continued, “Experts have said that it will take time before a COVID-19 vaccine is available, [so] we should ensure that there will be manufacturers of PPEs, test kits and medicines here in the Philippines for Filipinos”.
Under the provisions of SB 1759, also known as the Pandemic Protection Act of 2020, “importation of capital equipment, spare parts and accessories, raw materials, and other needed articles shall be exempt from customs duties, value-added tax (VAT), other taxes and fees such as import processing fees and fees imposed by the Bureau of Customs (BOC), the Food and Drug Administration (FDA), and other relevant agencies.”
Further, the bill shall exempt the local sales of critical products and services from VAT, while at the same time require businesses that produce and export critical products or services to supply 80% of their daily production to government institutions, hospitals, and private establishments.
Once enacted into law, manufacturers can avail themselves of this tax exemption as long as they meet the requirements.