Press Release
July 26, 2020

POE BATS FOR TAX INCENTIVES FOR DOCTORS PROVIDING FREE SERVICES

Doctors who brave the frontlines - with or without the pandemic - to give their services for free to where healthcare needs are at their direst deserve recognition and incentives, Sen. Grace Poe said.

In her Senate Bill No. 1715 or the Physician Pro Bono Care Act, Poe pitched that physicians rendering free services to indigent patients shall be entitled to a tax credit to be deducted from their gross income.

"A number of doctors have taken it upon themselves to volunteer and render free health services to our people who cannot afford to seek medical attention. The tax incentive is a way of giving back for their selflessness, commitment and expertise," Poe said.

According to the measure, the Department of Health (DOH) and the Philippine Medical Association (PMA) are tasked to evaluate the pro bono services rendered by the physicians, considering the number of hours and the nature of treatment involved.

The Bureau of Internal Revenue, in consultation with the DOH and the PMA, will promulgate the rules and regulations for the implementation of the measure.

In pushing for her proposal, Poe underscored the constitutional right of Filipinos to have access to health services, and for the government to endeavor to provide free medical care to the poor.

In 2019, the Philippines had a woeful doctor-to-patient ratio of 1:33,000 - far from the 1:6,600 global average. Worse, six out of 10 Filipinos die without seeing a doctor.

Poe said the COVID-19 pandemic has challenged the country's healthcare system and highlighted the importance of having adequate number of doctors in protecting and advancing public health.

The pandemic also widened the gap to quality healthcare access among the poor and the marginalized.

"Truthful to their oath, doctors reduce or even forgo their fees based on patients' circumstances. But we recognize that they also have a need to sustain their profession and that's where tax incentives could be most helpful," Poe said.

"If doctors could write off their pro bono work on their taxes, we would see more charity care. This is a win-win situation for patients and doctors," she said.

The senator explained that while a favorable tax incentive would result in less tax revenue, generating more free physicians' services could lead to long-term savings for the government's health insurance program, which would offset potential revenue losses.

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