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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. __ 8584

Introduced by Hon. ANGELICA NATASHA CO

EXPLANATORY NOTE

To make all the COVID-19 vaccines affordable and reasonably-priced, this bill proposes that
all the vaccines and everything needed in the fight against COVID-19 must be tax-free
regardless of country of origin, manufacturer, and whether for the public vaccination program
or for private inoculation by a health professional. Tax-free means not just zero import duties
and administrative fees but also zero VAT, other sales taxes, other business taxes, and local
taxes.

The national ireasury, BIR, Customs Bureau, und local governmenis 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.

Some of the COVID-19 vaccines could be produced in the industrial estates like PHTVIDEC
under license from the original manufacturers. All inputs for local manufacture should be tax-
free.

Vaccines need specialized, temperature-controlled containers for proper transport. Our country
must have enough of these cold slorage coniainers and facilities, so that the COVID-19
vaccines can be properly and safely shipped.

If we do not yet have these vaccines and means of cold storage, the DTI should find ways to
manufacture the vaccines and cold containers on a massive scale, along with the production of

tens of millions of syringes and other supplies needed.

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The country will also need safe places where enough vaccines and supplies can be stored on
stand-by for future needs.

We must anticipate vaccination of migrant balikbayans, returning OFWs, foreign tourists, and

crews of international airlines, passenger ships, cargo ships, personnel of foreign embassies
and international regional headquarters, and visiting foreign troops.

ANGELJCA SHA CO
Represent Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _8584

Introduced by: Hon. ANGELICA NATASHA CO

AN ACT
AMENDING THE NATIONAL INTERNAL REVENUE CODE TO ENSURE THE
AFFORDABILITY OF ANTI-COVID-19 TESTING, TREATMENT,
VACCINATION, AND LOCAL MANUFACTURE, AND FOR OTHER PURPOSES

Section 1. Short Title. This Act shall be known as the “ANTI-COVID-19 TESTING,
TREATMENT, VACCINATION, AND LOCAL MANUFACTURE AFFORDABILITY
ACT OF 2021.”

Section 2. Statement of Policy. It is hereby declared the policy of the State to make affordable
io the Filipino peopie, to the national government, local government units, businesses,
nonprofit organizations, and civil society institutions any and all vaccines, drugs, medicines,
supplies, testing kits, and equipment, including cold storage equipment, devices, and
containers, for the prevention and treatment of coronavirus disease 2019 (COVID-19).

Section 3. Amendments to the National Internal Revenue Code. A new Section 108 (B) (8)
of the NIRC is hereby inserted to read as follows:

Section 108 (B). The following services performed in the Philippines by VAT-
registered persons shall be subject to zero percent (0%) rate:

(8) IMPORTATION OF VACCINES, DRUGS, MEDICINES, SUPPLIES, TESTING
KITS, AND EQUIPMENT, INCLUDING COLD STORAGE EQUIPMENT,
DEVICES, AND CONTAINERS, FOR THE PREVENTION AND TREATMENT OF
CORONAVIRUS DISEASE — 2019 (COVID-19)

Section 4. With the insertion of the new provision in the preceding section, Section 108 (B) (8)
(ii) of the NIRC is hereby renumbered and amended to read as follows:

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Section 108 (B). The following services performed in the Philippines by VAT-
registered persons shall be subject to zero percent (0%) rate:

(9) Services rendered to:

(iii) Patients admitted to any hospital, clinic, or any medical facility for testing and
treatment of symptoms and confirmed COVID-19.

Section 5. Section 109 (AA) of the NIRC is hereby amended to read as follows:

Section 109. Exempt Transactions. Subject to the provisions of Subsection (2) hereof,
the following transactions are exempt for value-added tax:

AA. Sule of drugs and medicines prescribed for diabetes, hyperiension, and cholesterol
beginning January 1, 2019, AND OF VACCINES, DRUGS, MEDICINES, SUPPLIES,
TESTING KITS, AND EQUIPMENT, INCLUDING COLD STORAGE
EQUIPMENT, DEVICES, AND CONTAINERS, FOR THE PREVENTION AND
TREATMENT OF CORONAVIRUS DISEASE — 2019 (COVID-19) BEGINNING
JANUARY 1, 2021.

Section 6. Abolition of taxes on COVID-19 vaccines. Hereby abolished are any other taxes
on vaccines, drugs, medicines, supplies, testing kits, and equipment, including cold storage
equipment, devices, and containers, for the prevention and treatment of coronavirus disease —
2019 (COVID-19), including excise taxes, ad valorem taxes, import duties, and taxes
implemented by any national government instrumentality or local government unit, and
administrative fees imposed by any national government instrumentality or local government
unit

Section 7. Zero percent taxes on importation of materials used to make vaccines. Hereby
subject to zero percent (0%) rate is the importation of any ingredient, raw material, equipment,
supplies, devices, and instruments for the local manufacture or assembly of vaccines, drugs,
medicines, supplies, testing kits, and equipment, including cold storage equipment, devices,
and containers, for the prevention and treatment of coronavirus disease ~ 2019 (COVID-19).

Section 8. Implementing Guidelines, Rules, and Regulations. The Department of Finance,

Department of Health, Bureau of Internal Revenue, Bureau of Customs, Tariff Commission,
Department of the Interior and Local Government, and other concemed agencies shall issue

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the necessary guidelines, rules, and regulations to implement this Act not later than thirty (30)
days after its effectivity.

Section 9. Appropriations. The annual budget necessary to implement this Act shall be
included in the regular annual general appropriations.

Section 10. Separability. - If any provision or part of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall continue to be in full force
and effect.

Section 11. Repealing Clause. - All laws, executive orders, and administrative orders or parts
thereof inconsistent with any provision of this Act are hereby repealed or amended accordingly.

Section 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication
in the online version of the Official Gazette or in two (2) newspapers of general circulation or

with established internet website presence.

Approved.

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