Tax Relief

Salceda submits invoice to scale back taxes for producers of medical oxygen

PHOTO FILE: Albay Rep. Joey Salceda. REQUESTS

MANILA, Philippines – Albay Rep. Joey Salceda prepares bill to provide tax breaks for medical oxygen manufacturers.

The House of Representatives Committee on Means and Ways chairman said he would be telling the bill on the matter as Duterte is considering speaking to Congress about the matter to avoid a lack of oxygen.

“We will comply with the President’s request. I’m having a bill drawn up on this, ”he said in a statement.

READ: Duterte Says He Might Ask Congress To Give Medical Oxygen Companies Tax Breaks

Meanwhile, however, Salceda said there were other options the government could consider to give medical oxygen manufacturers a tax break.

According to him, one of the possible options is the extension of the Bayanihan provision to exempt medical oxygen deliveries from customs duties.

“There are also immediate remedies. That [Department of Finance] could also invoke Section 109 (BB) (ii) of the National Internal Revenue Code as enacted in CREATE, which exempts sales and imports of medical devices required for COVID-19 from VAT ”, observed Salceda.

“Oxygen deliveries definitely fall into this category. This provision will apply until December 2023, ”he added.

The government can also exempt manufacturers of oxygen supplies for export from their mandatory export thresholds so they can keep their supplies here instead of selling them overseas, Salceda said.

“We did this for manufacturers of personal protective equipment (PPE) through the Ministry of Commerce and Industry and the Philippine Economic Zone Authority,” he said.

A World Health Organization official had previously urged the Philippines to increase oxygen supplies in the face of the threat posed by the COVID-19 delta variant.

KGA

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