- Rep. Michael Defensor seeks to grant tax cuts to private entities that wish to sponsor the COVID-19 vaccines of public school teachers and students
- Under the bill, companies can claim a tax cut of up to 150 percent of their total vaccine donation
- Defensor explained that this will encourage more private corporations and wealthy individuals to contribute
Rep. Michael Defensor (Anakalusugan) has sought to give tax perks for private companies that will sponsor the COVID-19 vaccines of teachers and students.
Defensor has filed a bill that aims to grant lucrative tax benefits to private corporations and wealthy individuals who will sponsor the inoculation of over 933,000 public school teachers and 23 million children.
Under House Bill 9200, private entities that agree to donate COVID-19 jabs for those in the public school system will be entitled to over 150 percent of what they spent for the shots as “additional deduction” from gross income subject to tax.
The bill seeks to expressly include Covid-19 vaccines as qualified donations under the 23-year-old Adopt-a-School Program.
“We want to ramp up the immunization of our teachers, and later, our children, by encouraging the private sector to come in and help,” Defensor stated.
Defensor, who is the vice chairperson of the House committee on welfare of children, said that the measure will help entities contribute to the government’s COVID-19 vaccination program. It will also prevent “donor fatigue” and encourage more to participate in sponsoring the vaccination of teachers and students.
“We recognize that many businesses and affluent families are already helping to suppress the pandemic in so many ways, such as by spending for the inoculation of their employees and their dependents,” he added.
Defensor was referring to the Adopt-a-School program that was established in 1998. It was made to help private entities help in addressing the public school system’s resource problems. Under the program, donors of public schools may deduct from their gross income up to 150 percent of their value of their contributions.
For example, a private company donates P10 million worth of supplies to a private school, it may claim an extra tax cut of up to P15 million from gross income.