MANILA, Philippines — Sen. Francis Pangilinan is pushing anew the passage of a measure that will give tax perks to Filipino manufacturers of COVID-19 medical supplies and ensure adequate, affordable supplies and even create jobs.
“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. “Government should encourage them to stay the course. If factories are operating, Filipinos have jobs.”
Pangilinan is the author of Senate Bill 1759 or the Pandemic Protection Act that gives incentives to local manufacturers 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, importation of capital equipment, spares and accessories, raw materials and other needed articles is 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.
The bill, together with similar bills from other senators, is still pending in the Senate. Corresponding bills at the House are also pending.
When the pandemic broke out, Pangilinan said it was bared that there was no one in the country manufacturing critical medical supplies.
“We were forced to import and paid more for the COVID-19 supplies, and this is hurting our budget, the people’s money,” he said.
Responding to the needs of the times, Filipino manufacturers banded together and repurposed their operations to be able to produce the items.
However, they decried competition with imported medical products, which they said are often being favored by the government despite the lack of standards and testing.
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.