House panel OKs tax exemptions for LGU-bought COVID-19 vaccines

The House Committee on Ways and Means has approved tax exemptions for COVID-19 vaccines to be directly purchased by local government units (LGUs).

This provision is part of House Bill 8648, which aims to amend the Government Procurement Reform Act and expedite vaccine procurement.

The bill exempts the procurement, importation, storage, transport, distribution, and administration of these vaccines from customs duties, value-added tax, excise tax, and other fees.

However, the vaccines acquired must exclusively be for the use of the LGUs' residents and constituents and not for commercial distribution.

The measure also waives the requirement of Phase 4 trials for COVID-19 medication and vaccine, provided it is approved by the World Health Organization (WHO) and other globally-recognized health agencies.

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