BIR adds 16 medicines for cancer, diabetes, mental illness to VAT-exempt list
MANILA, Philippines — More medicines for treating cancer, diabetes and mental health conditions are now exempted from the 12% value-added tax (VAT).
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular 131-2024 on December 3, adding 16 more medicines to the list of VAT-exempt items under Republic Act 11534, also known as the CREATE Act.
According to Section 12 of the law, prescription drugs and medicines for diabetes, high cholesterol, hypertension, cancer, mental illnesses, tuberculosis and kidney diseases are eligible for VAT exemption.
The following medicines are now VAT-exempt:
Cancer
- Degarelix 80 mg
- Degarelix 120 mg
- Tremelimumab 25 mg/1.25 mL (20 mg/mL)
- Tremelimumab 300 mg/15 mL (20 mg/mL)
Diabetes
- Sitagliptin 25 mg
- Sitagliptin 25 mg (as hydrochloride) + Metformin Hydrochloride 50 mg/1 g
- Sitagliptin 25 mg (as hydrochloride) + Metformin Hydrochloride 50 mg/850 mg
- Sitagliptin (as hydrochloride) 25 mg
- Sitagliptin (as hydrochloride) 50 mg
- Sitagliptin (as hydrochloride) 100 mg
- Sitagliptin (as hydrochloride monohydrate) 25 mg
- Sitagliptin (as hydrochloride monohydrate) 50 mg
- Linagliptin 5 mg
Mental Illness
- Clomipramine Hydrochloride 25 mg
- Chlorpromazine (as hydrochloride) 200 mg
- Midazolam (15 mg)
These drugs, in various dosages, were endorsed by the Food and Drug Administration (FDA) to the BIR on October 14.
The FDA also corrected the generic name of Human Chorionic Gonadotropin, previously listed as Chorionic Gonadotrophin.
“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 in a statement.
In January, 21 medicines were listed as VAT-exempt. These included panitumumab, fulvestrant, metformin, atorvastatin calcium and atorvastatin + fenofibrate.
Persons with disabilities (PWDs) are also entitled to a 20% discount on any medication purchased at any drugstore.
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