THE Pharmaceutical and Healthcare Association of the Philippines (PHAP) sees the exemption from value- added tax (VAT) of certain drugs as yet another crucial step in improving health outcomes for Filipinos, particularly those with chronic conditions.
But Teodoro Padilla, PHAP executive director, said beyond the VAT exemption, there are also complementary mechanisms that could result in reduced medicine prices.
One of the advocacies of PHAP is pooled procurement for government-run hospital and other health institutions is pooled procurement to attain economies of scale.
Padilla said landmark laws, such as the Universal Healthcare Act and the National Integrated Cancer Control Act include mechanisms aimed at reducing medicine prices.
“These laws provide the framework for the government to negotiate prices, expand pooled procurement, and enter into agreements to achieve more affordable pricing for needed medicines,” Padilla told Malaya Business Insight.
Padilla expressed PHAP’s support to Revenue Memorandum Circular No. 131-2024 issued by the Bureau of Internal Revenue on December 3, which excludes from VAT certain medicines for cancer, diabetes and mental illness.
