COVID-19 vaccines would have already been VAT-free if not for House delay —Pia Cayetano

Vaccines against the coronavirus disease 2019 (COVID-19) could have already been exempted from value-added taxes (VAT) had the House of Representatives adopted the Senate's version of the Corporate Recovery and Tax Incentives for Enterprises (CREATE), a lawmaker claimed Sunday.

In a statement, Senator Pia Cayetano responded to a call by House Ways and Means chairman representative Joey Salceda for the government to exempt COVID-19 vaccines from VAT.

"I agree with the call of my House counterpart to exempt COVID-19 vaccines from tax. In fact, VAT exemption is already provided in the CREATE bill, which the Senate passed on third and final reading last November 26," she said.

"This could have already been a law now if only the House of Representatives saw the merit in adopting our version before the session ended this year," added Cayetano.

Congress adjourned session on December 19, and will resume a month later on January 18, 2021.

The Senate version of the CREATE Bill provides VAT exemption for the sale and importation of several products to counter COVID-19 starting January 1, 2021 until December 31, 2023.

Among such products are capital equipment, spare parts and raw materials necessary for production of personal protective equipment (PPE); all drugs, vaccines, and medical devices used for the treatment of the disease; and drugs approved for the clinical trials against COVID-19.

To recall, Salceda earlier this month called for the House of Representatives to adopt the Senate version of the bill to fast-track its passage, but the Senate received an official letter intending to hold a bicameral conference on the measure.

The House of Representatives was previously led by Cayetano's brother, Taguig-Pateros Representative Alan Peter Cayetano, who was later replaced as Speaker by Marinduque Representative Lord Allan Velasco following a squabble.

The Philippines has allocated P73.2 billion for the procurement of the vaccines, with P40 billion coming from multilateral agencies, P20 billion from domestic sources, and P13.2 billion from bilateral agreements. — BM, GMA News