FOREGONE revenues from tax and responsibility exemptions on Covid-19 vaccine imports processed by the Division of Finance (DOF) final 12 months reached virtually P8.7 billion.
Finance Assistant Secretary Dakila Elteen M. Napao of the DOF’s Income Operations Group (ROG) stated these foregone revenues amounting to P8.699 billion accounted for 37 p.c of the entire P23.4 billion tax and responsibility exemptions processed by the workplace final 12 months.
Of the 276 requests that had been acquired from vaccine importers by the DOF’s Income Workplace (RO), 254 purposes had been accredited and issued tax exemption indorsements (TEIs).
“Estimated foregone income is returning to its pre-pandemic determine of P23.9 billion in 2019,” Napao stated in a report back to Finance Secretary Carlos G. Dominguez. “Nonetheless, that is primarily as a result of foregone income attributable to importations of Covid-19 vaccines, in addition to importations of things associated to Covid-19 response.”
It was Dominguez who accredited the inclusion of all Covid-19 vaccine imports within the specific, or Mabuhay, lane of the DOF Income Workplace to permit the short processing of the tax and responsibility exemptions of the doses inside 24 hours.
Other than this, submitting charges for Covid-19 vaccine purposes beneath the Mabuhay Lane had been waived and the Tax Exemption System On-line Submitting Module was used to course of vaccine imports following Dominguez’s approval.
In the meantime, Napao stated the DOF RO additionally issued TEIs to 823 purposes for value-added tax exemptions on imports of Covid-19 medicines and medical gadgets, which resulted in foregone VAT revenues of P382.1 million in 2021.
The Monetary Analytics and Intelligence Unit (FAI), which can also be beneath the ROG, accredited P211-million value of tax refunds referred to the DOF by the Bureau of Customs final 12 months.
Beneath Government Order 46, the FAI was institutionalized to function the info analytics unit of the DOF for functions of income administration and to overview issues that could be deemed fiscally hostile to the federal government, together with these elevated by companies, bureaus and places of work connected to DOF for the approval and conformity of the Secretary of Finance, amongst different key features.