House panel OKs tax, duty exemption for Covid-19 vaccines

MANILA – A measure seeking to exempt Covid-19 vaccines from duties and value-added tax (VAT) hurdled committee level at the House of Representatives.

During a hearing on Monday, the House Ways and Means Committee, chaired by Albay Rep. Joey Salceda, approved a consolidated substitute bill proposing to make the Covid-19 vaccines tax-free to ensure the fast, efficient, and safe delivery of the vaccines.

Salceda said all economic policy during the pandemic must be geared towards being a bridge to a Covid-19 vaccine.

“One day saved from the tax refund system, and one day of not having to deal with customs procedures is worth billions in economic output. As President Duterte said, when he cited a figure I calculated, we are losing some PHP20 billion pesos in economic output due to delays in vaccination. So, the revenue impact of these bills matters very little to me, in view of their overwhelming economic importance,” Salceda said.

Bagong Henerasyon Party-list Rep. Angelica Natasha Co, an author of the bill, said the government need not gain financially from the importation and distribution of the Covid-19 vaccines because the country’s immediate gain is the “further reopening of the economy and onwards to the new normal” with the coronavirus still a lingering threat.

“Public health, public safety, and our economic security require that all impediments, including cost constraints, to the swift and effective implementation of the vaccination program, must be cast aside,” Co said.