By Francis Allan L. Angelo
The Bureau of Internal Revenue (BIR) has announced the exemption of an additional 15 medicines from Value-Added Tax (VAT), continuing its efforts to make healthcare more affordable for Filipinos.
The decision covers drugs used in the treatment of cancer, high cholesterol, hypertension, and mental illness, as outlined in Revenue Memorandum Circular No. 93-2024, issued on August 27, 2028.
BIR Commissioner Romeo D. Lumagui, Jr. emphasized that this update aligns with the government’s commitment to enhancing public access to essential healthcare services.
“The BIR has exempted from VAT an additional 15 medicines for cancer, high cholesterol, hypertension, and mental illness. The BIR is now a service-oriented agency, which includes the regular update of medicines that will fall under VAT-exempt products. The BIR supports the government’s thrust in helping the public have access to more affordable healthcare and medicine,” Lumagui said.
The latest directive is a response to the updated list of VAT-exempt products from the Food and Drug Administration (FDA) and is consistent with the provisions under Republic Act No. 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law, and Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The exemption is also an update to the list of VAT-exempt drugs and medicines specified under Section 109(AA) of the National Internal Revenue Code of 1997.
