TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. ^47
. jC'.rjffit; of 11)1' isrrrtarf
25 JULIO PI :17
RECEIVED BV;
Introduced by Senator PIA S. CAYETANO
AN ACT
EXEMPTING THE IMPORTATION OF MEDICAL DEVICES AND EQUIPMENT 
FROM CUSTOMS DUTY AND VALUE-ADDED TAX FOR A PERIOD OF FIVE (5) 
YEARS
EXPLANATORY NOTE
The Constitution mandates that the "State shall adopt an integrated and 
comprehensive approach to health development which shall endeavor to make 
essential goods, health and other social services available to all the people at 
affordable cost." This is also consistent with our country's commitment to the World 
Health Organization's International Health Regulations and the Sustainable 
Development Goals (SDGs), particularly, SDG 3, which requires the State to ensure 
healthy lives and promote well-being for all at all ages. However, many public health 
facilities in the country are still in need of sufficient medical devices and equipment to 
properly diagnose and treat medical conditions.
The Philippine medical equipment market still remains heavily reliant on 
imports, as most of our medical equipment are sourced from abroad.1 These imported 
medical equipment are subjected to three percent (3%) customs duty, in addition to 
twelve percent (12%) value-added tax (VAT). These fiscal impositions add to the 
already expensive costs for medical diagnosis and heaith care in the country.
According to the Philippine Health Facility Development Plan (2020-2024), 
many health facilities across the country still lack essential medical equipment such as
11nternational Trade Administration, US Dept, of Commerce. (2024). Country Commercial Guides 
Philippines-Healthcarel Medical Devices, https://www.trade.gov/country-commercial- 
guides/philippines-healthcare


CT scans, MRIs, X-rays, and Medical Linear Accelerator (LINAC) machines, particularly 
in areas outside Metro Manila.2 This restricts timely and equitable access to health 
care, especially in underserved regions.
This proposed measure, first filed in the 18th Congress, seeks to address these 
gaps by exempting from customs duties and taxes the importation of medical devices 
and equipment intended for medical research, diagnosis, or treatment for five (5) 
years. The Department of Health (DOH) will determine the specific devices and 
equipment covered by this exemption to ensure that only essential technologies are 
prioritized. After the exemption period, regular tax rates shall resume, subject to policy 
review.
The enactment of this bill represents a timely and necessary step to make 
health care services more affordable and accessible, promote advancements in 
medical research, and improve diagnostic capabilities for all Filipinos.
In view of the foregoing, the approval of this bill is earnestly sought.
PIA S. CAYEJANO
2 Department of Health. (2020). Philippine Health Facility Development Plan 2020-2040. Manila, 
Philippines: Department of Health


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
347
S. No.
of rnr ■'s'-ciI'Uiif
25 JULIO Pin? 
\
RECEIVED BY;__
V/
Introduced by Senator PIA S. CAYETANO
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AN ACT
EXEMPTING THE IMPORTATION OF MEDICAL DEVICES AND EQUIPMENT 
FROM CUSTOMS DUTY AND VALUE-ADDED TAX FOR A PERIOD OF FIVE (5) 
YEARS
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Short Title. — This Act shall be known as the "Tax-Free Importation 
of Medical Devices and Equipment Act".
Sec. 2. Declaration of Policy. — It is the declared policy of the State to protect 
and promote the health of Filipinos and instill health consciousness among them. The 
State shall endeavor to lessen, if not remove, the costs burdened upon Filipinos when 
accessing health care and medical services. Towards this end, the State shall adopt 
fiscal measures to encourage the entry of medical devices and equipment in the 
country to, among others, aid in affordable medical diagnoses and treatment, and 
facilitate development and innovation in medical research that would provide accurate 
and effective medical treatment in the country.
Sec. 3. Relief from Customs Duty and Value-Added Tax on the Importation of 
Medical Devices and Equipment.3 — The importation of the following are hereby 
exempted from customs duty and value-added tax (VAT) for a period of five (5) years 
from the effectivity of this Act:
a) Any medical device or equipment intended for medical research;
b) Any medical device or equipment intended for medical research.
3 Irish Tax and Customs CDPN 16 http://www.revenue.ie/en/customs/leaflets/relief-for- 
importationmedical-equipment.html


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establishing medical diagnoses, or intended for medical treatment 
purchased with public funds;
c) Any medical device or equipment intended for medical research, 
establishing medical diagnoses, or intended for the medical treatment of 
its patients purchased by private hospitals or medical institutions; and
d) Any spare parts, components, and accessories designed for the 
upgrading, maintenance, inspection, calibration or repair of the medical 
device or equipment.
Sec. 4. List of Devices and Equipment— The DOH shall determine and provide 
a list of medical devices and equipment that shall be covered by the tax exemption 
under this Act: Provided, That such list shall be limited to medical devices and 
equipment of similar nature or classification as those enumerated under Section 3 of 
this Act.
Sec. 5. Prior Approval from the Food and Drug Administration. — Pursuant to 
Republic Act No. 9711, otherwise known as the "Food and Drug Administration Act of 
2009", the consignee shall obtain an import permit or clearance from the Food and 
Drug Administration (FDA) for the imported medical device or equipment before the 
availment of the tax exemption from customs duty and value-added tax as provided 
under this Act.
Sec. 6. Separability Clause. — If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in force and effect.
Sec. 7. Repealing Clause. — Any law, presidential decree or issuance, executive 
order, letter of instruction, rule or regulation inconsistent with the provisions of this 
Act is hereby repealed or modified accordingly.
Sec. 8. Effectivity. — This Act shall take effect after fifteen (15) days following 
its complete publication in the Official Gazette or a newspaper of general circulation.
Approved,