Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
INTRODUCED BY REPRESENTATIVE JAIME D. COJUANGCO 
EXPLANATORY NOTE 
Pandemics and public health emergencies can claim millions of lives, 
disrupt societies and devastate economies. The COVID-19 pandemic has been 
a wake-up call on the necessary reforms to better prevent, detect, and respond 
to future disease outbreaks. Observed was the need to strengthen national-
level capacities, including the production and availability of vaccines, 
pharmaceuticals and other public health equipment and supplies, and other 
interventions. 
The COVID-19 pandemic caused a huge surge in global demand for 
many healthcare products. It affected supply chains which resulted in 
widespread and large-scale shortages of key items which are vital to 
combatting the spread of the virus. These included critical products such as 
vaccines, medicines, and essential goods such as personal protective 
equipment (PPE), surgical equipment and supplies, medical equipment and 
devices and testing kits, among others. Supply chain disruptions can lead to 
restricted access to products. Hence, some measures must be adopted to 
ensure the provision of adequate equipment, pharmaceuticals and supplies 
necessary to optimize response efforts during a pandemic. 
This bill seeks to exempt the importation of critical medical products 
and essential goods required to address public health emergencies from import 
duties, taxes and other fees which can be availed of by private firms, the 
National Government and its instrumentalities and by local government units 
pursuant to the whole-of-country approach. The Secretary of Health and the 
Secretary of Finance shall have the authority to determine and periodically 
issue the list of critical medical products and essential goods that will be 
eligible for exemption. However, the tax exemptions can only be availed of 
upon declaration of the President of the Philippines of a Public Health 
Emergency. 
The country must always be prepared to deal with any public health 
emergency that the threatens the lives and well-being of the people. While the 
March 21, 2023
2:55 pm
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grant of tax exemptions entails loss of government revenues, no pecuniary 
amount can ever commensurate the value of life and well-being of our people. 
For the foregoing reasons, the immediate consideration and approval of 
this bill is earnestly urged. 
JAIME D. COJUANGCO 
Representative 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
INTRODUCED BY REPRESENTATIVE JAIME D. COJUANGCO 
AN ACT 
EXEMPTING 
CRITICAL PRODUCTS, 
ESSENTIAL 
GOODS, 
INPUTS, 
RAW 
MATERIALS, 
AND 
EQUIPMENT FROM TAXES, DUTIES, AND OTHER 
FEES DURING PUBLIC HEALTH EMERGENCIES 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled. 
Section  1. Short Title – This Act shall be referred to as the “Public 
1 
Health Emergency Tax Exemption Act of 2023.” 
2 
Section   2.   Declaration of Policy – It is hereby declared the policy of 
3 
the State to ensure and protect the health and safety of the people. The State 
4 
shall continuously adopt mechanisms that would enhance its capacity to 
5 
address threats to the health security of the citizenry. Toward this end, it shall 
6 
minimize barriers that impede the State’s capacity to cope with COVID-19 
7 
and other public health emergencies. 
8 
Section   3.   Definition of Terms – As used in this Act: 
9 
a) Critical medical products refer to vaccine and other necessary medicines
10 
to contain Public Health Emergencies;
11 
b) Essential goods refer to personal protective equipment (PPE) such as
12 
gloves, gowns, masks, goggles, and face shields; surgical equipment and
13 
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supplies; laboratory and its reagents; medical equipment and devices; 
1 
support and maintenance for laboratory and medical equipment; medical 
2 
supplies, tools, and consumables such as alcohols, sanitizers, tissue papers, 
3 
thermometers, hand soaps, detergents, sodium hypochlorite, cleaning 
4 
materials, povidone iodine; testing kits, and such other supplies or 
5 
equipment as may be determined by the Department of Health (DOH) and 
6 
other relevant government agencies; 
7 
c) Equipment for waste management refers to waste segregations, storage, 
8 
collection, sorting, treatment, and disposal services: Provided, That these 
9 
equipment, technologies, and services are approved by the Department of 
10 
Environment and Natural Resources (DENR), DOH, and or other 
11 
concerned regulatory agencies; 
12 
d) Inputs, raw materials, and other equipment refer to those necessary for the 
13 
manufacture or production of essential goods related to the containment or 
14 
mitigation of Public Health Emergencies; Provided, That the purpose of 
15 
qualifying for exemption from import duties, Value-Added Tax (VAT), 
16 
and other fees, and for ensuring the supply of PPE at competitive prices, 
17 
the Department of Trade and Industry (DTI) shall certify that the inputs, 
18 
raw materials, and equipment being imported are not locally available or 
19 
are of insufficient quality and preference: Provided, further, That 
20 
preference is given to products, materials and supplies produced, made, or 
21 
manufactured in the Philippines; 
22 
e) Private firms, refer to corporations, partnerships and other entities in the 
23 
private sector lawfully authorized to engage in trade, business, commerce, 
24 
and other income-generating enterprises, including the provision of 
25 


various services to the public and employing at least fifty (50) persons; 
1 
and, 
2 
f) Public Health Emergency refers to an occurrence or imminent threat of an 
3 
illness or health condition that: 
4 
1) Is caused by any of the following: 
5 
(i) 
Bioterrorism; 
6 
(ii)   Appearance of a novel or previously controlled or eradicated 
7 
infectious agent or biological toxin; 
8 
(iii)   A natural disaster; 
9 
(iv)    A chemical attack or accidental release; 
10 
(v)    A nuclear attack or accident; or 
11 
(vi)    An attack or accidental release of radioactive materials; and, 
12 
2) Poses a high probability of any of the following: 
13 
(i)   A large number of deaths in the affected population; 
14 
(ii)   A large number of serious injuries or long-term disabilities in 
15 
the affected population; 
16 
(iii) Widespread exposure to an infectious or toxic agent that poses 
17 
a significant risk of substantial harm to a large number of 
18 
people in the affected population; 
19 
(iv) International exposure to an infectious or toxic agent that poses 
20 
significant risk to the health of citizens of other countries; or 
21 
(v)   Trade and travel restrictions. 
22 
Section  4.  Coverage – The provisions of this which Act exempt 
23 
private firms, the National Government and its instrumentalities, or Local 
24 
Government Units (LGUs) from taxes, duties, other fees, and export threshold 
25 


requirements shall require a declaration of a Public Health Emergency by the 
1 
President. 
2 
Section  5. Exemption From VAT, Customs Duties and Other Fees 
3 
for Private Firms – Notwithstanding any law to the contrary, the sale or 
4 
importation of critical medical products, essential goods, equipment for waste 
5 
management, inputs, raw materials, and other equipment by private firms shall 
6 
be exempt from VAT, customs duties, and other fees:  Provided that, That the 
7 
Secretary of Health and Secretary of Finance shall determine and periodically 
8 
issue the list of critical medical products, essential goods, equipment for waste 
9 
management, inputs, raw materials, and other equipment eligible for such 
10 
exemption. 
11 
Section   6.  Exemption From VAT, Customs Duties and Other fees 
12 
for the National Government and its Instrumentalities, or LGUs – The 
13 
procurement, importation, storage, transport, distribution, sale, and 
14 
administration of critical medical products and essential goods by the National 
15 
Government and its instrumentalities, or LGUs, shall be exempt from VAT, 
16 
customs duties, and other fees; Provided, That the Secretary of Health and 
17 
Secretary of Finance shall determine and periodically issue the list of critical 
18 
medical products and essential goods eligible for such exemption. 
19 
Section   7.  Exemption From Donor’s Tax and Other Fees for Private 
20 
Firms, the National Government and its Instrumentalities, or LGUs – 
21 
Donations of critical medical products, essential goods, equipment for waste 
22 
management, inputs raw materials, and other equipment to private firms, the 
23 
National Government and its instrumentalities, or LGUs, shall be exempt 
24 
from donor’s tax and other fees; Provided,  That the Secretary of Health and 
25 


the Secretary of Finance shall determine and periodically issue the list medical 
1 
products, essential goods, equipment for waste management, inputs, raw 
2 
materials, and other equipment eligible for such exemption. 
3 
Section   8.  Exemption From Export Requirements – The Secretary 
4 
of Finance, upon the recommendation of the Secretary of Health and Secretary 
5 
of Trade and Industry, may suspend the threshold on required export sales for 
6 
availment of privileges under Title XIII of the National Internal Revenue 
7 
Code of 1997, as amended , for goods critically needed for the prevention, 
8 
control, and treatment of COVID-19 or other causes of a Public Health 
9 
Emergency during the effectivity of this Act, or for specific business 
10 
enterprises manufacturing such goods: Provided, That such exemption shall 
11 
be subject to a periodic review: Provided, further,  That the Secretary of 
12 
Finance, upon the recommendation of the Secretary of Trade and Industry and 
13 
the Secretary of Health, may make such exemptions conditional upon meeting 
14 
certain quota on volume of output for supplying domestic needs. 
15 
Section   9. Tax Deduction – The Secretary of Finance, upon the 
16 
recommendation of the Secretary of Health and the Secretary of Trade and 
17 
Industry, may direct the Commissioner of Internal Revenue to issue 
18 
regulations to allow expenses incurred by private firms, as defined in this Act, 
19 
as deductions from gross income in computing their taxable income in 
20 
accordance with the provisions of the National Internal Revenue Code of 
21 
1997, as amended.  
22 
Section   10.  Liberalization of Import Procedures – The Bureau of 
23 
Customs, in consultation with other concerned agencies, is hereby mandated 
24 
to formulate liberalized procedures to expedite the entry of critical medical 
25 


products, essential goods, equipment, and supplies to address public health 
1 
emergencies in the country. 
2 
Section   11.  Implementing Rules and Regulations – Within thirty 
3 
(30) days from the effectivity of this Act, the Department of Finance shall, in 
4 
consultation with the DOH and the DTI, issue the implementing rules and 
5 
regulations for this Act.   
6 
 
Section 12. Separability Clause -If any provision of this Act is declared 
7 
unconstitutional or invalid, the other provisions not otherwise affected shall 
8 
remain in full force and effect. 
9 
Section  13. Repealing Clause – All laws, decrees, executive orders, 
10 
rules and regulations, and other issuances or parts thereof which are 
11 
inconsistent with this Act are hereby repealed, amended or modified 
12 
accordingly. 
13 
Section  14. Effectivity – This Act shall take effect fifteen (15) days 
14 
after its publication in the Official Gazette or in any newspaper of general 
15 
circulation. 
16 
APPROVED.