The House Committee on Ways and Means on Monday approved the measure providing tax exemptions for local government units (LGUs) to expedite the procurement and administration of vaccines against the COVID-19.
House Bill No. 8648 or the proposed “Emergency Vaccine Procurement Act of 2021” filed by House Speaker Lord Allan Velasco, Majority Leader Martin Romualdez and Minority Leader Joseph Stephen Paduano primarily seeks to amend certain provisions under Republic Act No. 9184 or the “Government Procurement Reform Act.”
Under the measure, the LGUs’ procurement, importation, storage, transport, distribution and administration of COVID-19 vaccines shall be exempted from customs duties, value added tax (VAT), excise tax and other fees, provided that the vaccines purchased would only be distributed to residents and constituents—not for commercial distribution.
The bill was originally approved by the House Committee on Appropriations but was later referred to the ways and means panel for the approval of the tax provision.
The measure also waives the requirement of Phase 4 trials for COVID-19 medication and vaccine stipulated in the Universal Health Care Law to fast track the procurement process, provided this is approved by the World Health Organization (WHO) and other globally-recognized health agencies.
The bill also authorizes provinces, cities and municipalities to make advance payment. However, this does not exempt LGUs from the Commission on Audit’s (COA) post transaction audit.
“The next crucible in the fight against the COVID-19 pandemic is the speedy procurement and effective administration of vaccines against the deadly disease,” Velasco earlier said of the bill.
“Time is of the essence. Each day of delay is very costly for the government, and leaves many of our vulnerable countrymen exposed to the dangers of this disease,” the House leader stressed.