Filipinos undergoing long-term treatment for cancer, hypertension, diabetes and other serious illnesses may pay less for their medicines after the government expanded its list of value-added tax (VAT)-exempt drugs to 2,277 products.
According to a story published by the Philippine News Agency (PNA) on Wednesday, the Bureau of Internal Revenue (BIR) released the updated list through Revenue Memorandum Circular No. 87-2026.
Of the VAT-exempt medicines, 708 are used for cancer, 537 for hypertension, 331 for diabetes, 300 for mental illness, 172 for high cholesterol, 152 for kidney disease, and 77 for tuberculosis.
The medicines were endorsed by the Food and Drug Administration under Republic Act No. 10963, or the TRAIN Law, and Republic Act No. 11534, or the CREATE Act.
Removing VAT from these medicines is expected to reduce out-of-pocket expenses, particularly among patients who require regular medication or long-term treatment for chronic and life-threatening illnesses.
The BIR said the expanded list supports President Ferdinand Marcos Jr.’s directive during his fifth State of the Nation Address to improve access to healthcare by lowering the cost of essential medicines.
“The Bureau remains steadfast in implementing tax policies that directly benefit our people. By expanding the list of VAT-exempt medicines, we are helping make essential healthcare more affordable while supporting the President’s vision of a healthier and more resilient Philippines,” BIR Commissioner Charlito Mendoza said.
