Foreign Donations Of Food, Medicine, Equipment
For Calamity Affected Areas Should Be Exempt From VAT

Senator Loren Legarda said donated items or goods from foreign donors which are exclusively for non-profit, charitable, humanitarian, relief purposes benefiting the poor and the needy, should be exempt from payment of the Value Added Tax (VAT).

Legarda filed S.B. No. 1411 because Section 107 on Value Added Tax on Imported Goods of the National Internal Revenue Code, prescribes that every importation shall be subject to Value Added Tax.

The Chair of the Senate Committee on Climate Change said this provision hinders the receipt of food, medicine and equipment for government relief and rehabilitation programs in calamity affected areas.

"If such goods are exempt from VAT, it will facilitate the entry and the distribution of donations for the benefit of the less fortunate."