Senator Francis Pangilinan has pushed for the extension of tax perks to Filipino manufacturers of COVID-19 medical supplies to ensure adequate products that are not overpriced.
“As much as we are protecting the welfare of our frontliners, we must not forget our backliners who make critical COVID-19 supplies available,” he said.
He said the government should encourage them to stay the course to protect the livelihood of their employees as well.
Pangilinan is author of Senate Bill 1759 or the Pandemic Protection Act that gives incentives to local manufacturers and producers of some of the products critical amid the pandemic, such as personal protective equipment, test kits, ventilators, face shields, face masks and other supplies.
Under the bill, the importation of capital equipment, spare and accessories, raw materials and other needed articles will be exempt from customs duties, value added tax (VAT), other taxes and fees such as import processing fees and other fees imposed by the Bureau of Customs, Food and Drug Administration and other relevant agencies.
It will also exempt the local sales of critical products and services from VAT.
The bill also requires businesses that produce and export critical products or services to supply up to 80 percent of their daily production to government institutions, hospitals, and private establishments for local and domestic use.
“We were forced to import and pay more for the COVID-19 supplies, and this is hurting our budget, the people’s money,” said the running mate of Vice President Leni Robredo in next year’s national elections.
At a recent Senate hearing, members of the Coalition of Philippine Manufacturers of PPE and the Confederation of Wearables Exporters of the Philippines also pushed for the passage of the Pandemic Protection Act.
In a joint statement, the two groups said: “We are here today, in aid of legislation, and to plead that the Senate act with immediacy on the proposed Pandemic Protection Act pending before both Houses of Congress.”
“Our local manufacturers have heeded the call of the times and produced what we needed to protect ourselves against COVID-19. The government must begin to shun imported supplies and buy local. We will get the same if not better quality and at the correct price,” Pangilinan said.