More than 2,200 medicines are now exempted from value-added tax (VAT), the Bureau of Internal Revenue (BIR) said Wednesday.
The BIR issued Revenue Memorandum Circular (RMC) No. 87-2026, publishing the updated list of 2,277 Value-Added Tax (VAT)-exempt medicines endorsed by the Food and Drug Administration (FDA) pursuant to Republic Act 10963 (TRAIN law) and Republic Act 11534 (CREATE Act).
BIR said the issuance supports President Ferdinand R. Marcos Jr.’s directive during his fifth State of the Nation Address to expand access to quality healthcare by reducing the cost of essential medicines.
The bureau said that of the total number of VAT-exempt medicines, 708 are 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 expanded coverage helps reduce out-of-pocket medical expenses, particularly for Filipinos undergoing long-term treatment for chronic and life-threatening illnesses.
“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. (PNA)
