Albay Representative Joey Salceda on Friday urged the government to ensure that the importation of the COVID-19 vaccines would be exempted from any duties and value added tax (VAT) to lessen administrative costs and burdens that could delay procurement and distribution.
(Albay Rep. Joey Salceda's office / FILE PHOTO / MANILA BULLETIN)
Salceda, House Ways and Means Committee chief, said the benefits of removing the tariff and tax barriers to importing COVID-19 vaccines is critical to expediting mass vaccination by several days.
“Each day that we are unable to return to the ‘old normal’ costs the economy P85-billion at least,” Salceda said in a statement.
“The cost-benefit analysis appears to me to be very clearly on the side of frictionless importation. Every day will be life-saving,” the House’s tax chief said.
The lawmaker explained that one of the compelling reasons the Lower House is agreeing to the passage of the proposed Corporate Recovery and Tax Incentives for Enterprises or the CREATE bill is due to its provision exempting COVID-19 vaccines and drugs from VAT.
“Of course, that has to be subject to some time limits, but generally, government should not try to collect on drugs and vaccines for this health emergency,” he said.
He added that the Customs Modernization and Tariff Act (CMTA) allows the President to suspend duties for COVID-19 vaccines.
“Under Chapter 2, Section 1608 of the CMTA, or the ‘Flexible Clause’, President Duterte can suspend the tariffs on COVID-19 vaccines, upon the recommendation of the NEDA (National Economic Development Authority (NEDA). We can also legislate this,” the solon said.
“I am in constant communication with the economic managers, so, once the first shipments are ready, we can easily recommend the suspension of duties,” Salceda pointed out.
Salceda said the government should also stockpile on syringes, cold-storage and other COVID-related supplies and equipment and be able to plan and prepare for contingencies.
“The world is in some sort of vaccination rush, so one can expect shortages of syringes, needles and other vaccination needs. We are looking at 4 to 7 billion doses of COVID-19 vaccines being administered in 2021 and 2022,” he stressed.
“We need to have contingencies. Congress is ready to appropriate the necessary funding, but we need a good plan from the Executive,” he reiterated.