29 August 2024 | 12:00 AM
MANILA, Philippines — The Bureau of Internal Revenue has expanded the list of medicines exempt from value-added tax (VAT) to include medicines for cancer, high blood pressure and mental illnesses.
In its latest revenue memorandum circular, the BIR approved the updated list under the Tax Reform Acceleration and Inclusion Act and the Corporate Recovery and Enterprise Tax Incentives Act approved by the Food and Drug Administration.
The notice covers 15 medicines, including seven cancer drugs, five high blood pressure drugs, two mental health drugs and one high cholesterol drug.
The medicines are available in the form of capsules, lyophilized powders for infusion, tablets, concentrates, powder concentrates, solutions for injection, oral solutions and syrups.
“The BIR is now a service-oriented agency, and this includes the regular updating of pharmaceutical products that fall under VAT-exempt products,” BIR Secretary Romeo Lumagui said.
The Bureau of Internal Revenue (BIR) last added 20 drugs for the treatment of cancer, hypertension and mental illnesses to its VAT exemption list in March.
In January 2019, the government began implementing a VAT exemption on prescription medicines used to treat cardiovascular diseases and diabetes.
The VAT exemption applies to sales by pharmaceutical manufacturers, distributors, wholesalers and retailers and is intended to make certain medicines more affordable for consumers.
According to data from the Philippine Statistics Authority, the top three causes of death in the country last year were heart disease, cancer and cerebrovascular disease, together accounting for 40 percent of deaths.
