Senate Bill Revokes Taxes for Donated Vaccines in the Philippines
Donated Vaccines

Senate Bill Revokes Taxes for Donated Vaccines in the Philippines

Senate Finance Chair Juan Edgardo Angara proposed a bill waiving the donor’s tax for any donation of drugs, vaccines, and other medical supplies specifically prescribed for the treatment of COVID-19 in the Philippines. 

Senate Bill No. 2046 was proposed in response to increasing the supply of vaccines and essential medical equipment to fight against COVID-19 in the country. 

Angara expressed that the donations of such supplies should be exempted from the tax rule since COVID-19 supplies have become widely purchasable by the government and the private sector.

Angara stated, “The national government, local government units, and the private sector are all in the thick of preparations for the arrival of the first doses of the COVID-19 vaccines. Many of these vaccines will be made available to the public through the generosity of donors. We want to encourage more of these donations by exempting these from the donor’s tax.” 

He also added how similar incentives were granted in Republic Act No. 11469 (Bayanihan 1) and Republic Act No. 11494 (Bayanihan 2) in recognition of the need to increase the supplies of goods needed by our front-liners.

He continued, “Through this proposal to exempt from donor’s tax, unimpeded distribution of donation of vaccines and other related equipment by government and private sectors will be assured.”

The bill shall include the following in the donor’s tax exemption:

  • Capital equipment, spare parts, raw materials needed for the production of personal protective equipment (PPEs);
  • Donations of drugs for the treatment of COVID-19 approved by the Food and Drug Administration (FDA) for use in clinical trials including raw materials needed to produce such drugs; and
  • Donations of equipment for waste management, including segregation, storage, collection, sorting, treatment, and disposal services. 

Once granted, the bill shall take effect from January 1, 2021 to December 31, 2023.

Senate Finance Chair Juan Edgardo Angara proposed a bill waiving the donor’s tax for any donation of drugs, vaccines, and other medical supplies specifically prescribed for the treatment of COVID-19 in the Philippines. 

Senate Bill No. 2046 was proposed in response to increasing the supply of vaccines and essential medical equipment to fight against COVID-19 in the country. 

Angara expressed that the donations of such supplies should be exempted from the tax rule since COVID-19 supplies have become widely purchasable by the government and the private sector.

Angara stated, “The national government, local government units, and the private sector are all in the thick of preparations for the arrival of the first doses of the COVID-19 vaccines. Many of these vaccines will be made available to the public through the generosity of donors. We want to encourage more of these donations by exempting these from the donor’s tax.” 

He also added how similar incentives were granted in Republic Act No. 11469 (Bayanihan 1) and Republic Act No. 11494 (Bayanihan 2) in recognition of the need to increase the supplies of goods needed by our front-liners.

He continued, “Through this proposal to exempt from donor’s tax, unimpeded distribution of donation of vaccines and other related equipment by government and private sectors will be assured.”

The bill shall include the following in the donor’s tax exemption:

  • Capital equipment, spare parts, raw materials needed for the production of personal protective equipment (PPEs);
  • Donations of drugs for the treatment of COVID-19 approved by the Food and Drug Administration (FDA) for use in clinical trials including raw materials needed to produce such drugs; and
  • Donations of equipment for waste management, including segregation, storage, collection, sorting, treatment, and disposal services. 

Once granted, the bill shall take effect from January 1, 2021 to December 31, 2023.

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