House OKs on 2nd reading bill making medical oxygen, COVID-19 supplies tax-free

The House of Representatives on Wednesday approved on second reading the bill exempting medical oxygen and other medical supplies amid the COVID-19 pandemic from all taxes.

In a voice vote, the chamber approved House Bill 8895 or the proposed "Public Health Emergency Importation Tax Exemption Act," which was filed following the request of President Rodrigo Duterte to pass such a measure amid the health crisis.

“The bill comes at a good time when we are in need of these critical supplies. This end-to-end exemption will help bolster our stock of critical supplies, such as medical oxygen,” Albay Representative Joey Salceda, one of the authors, said.

"This will save lives. It will serve as a ready mechanism for this president and future presidents to use when a public health emergency is imminent or in place,” he added.

The proposed law exempts from taxes the manufacture, importation, sale, and donation of critical medical supplies and essential goods during public health emergencies.

It also mandates the Secretary of Health and the 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.

Under the measure, 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. -MDM, GMA News