The Bureau of Internal Revenue (BIR) has added 16 more medicines to its list for exemption from the value-added tax (VAT).
The BIR said the move seeks to lower prices of certain medications to more affordable levels for people suffering from specific health conditions. VAT imposes a 12-percent sales tax.
In a statement, the bureau said it issued Revenue Memorandum Circular No. 131-2024 on December 3, which excludes from VAT certain medicines for cancer, diabetes and mental illness.
“Excellent Taxpayer Service includes the timely tax exemption of eligible medicines. The BIR supports the national government’s thrust of more affordable medicine and healthcare. The BIR will do its share in uplifting the lives of our fellow Filipinos.” BIR Commissioner Romeo Lumagui Jr. said.
The circular supports the updated list of VAT-exempt products from the Food and Drug Administration, under Republic Act No. 10963 and 11534.
Cancer medications on the exemption list are Degarelix 80 milligrams (mg) and 120 mg, both in freeze-dried powder and injectable solution. Also exempted from VAT is Tremelimumab, a tumor-growth inhibitor, including doses of 25mg /1.25 ml and 300 mg/15 ml as concentrate solution for infusion.
Three medications for mental illness that are now VAT-exempt are Clomipramine Hydrochloride (25 mg), Chlorpromazine as hydrochloride (200 mg) and Midazolam (15 mg), all in tablet form.
For maintenance medicines for diabetes, eight different doses of Sitagliptin tablets were included in the list, as well as Linagliptin 5 mg.
“This is an update to the list of VAT-exempt drugs and medicines under Section 109 of the National Internal Revenue Code of 1997, as amended the TRAIN Law and CREATE Act,” the BIR said.
