BIR adds more medicines to VAT-exempt list

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has issued the updated list of value-added tax (VAT)-exempt medicines for various diseases such as diabetes and hypertension.

In its latest revenue memorandum circular, BIR has approved the list of the 12 percent VAT-exempt products under the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.

This comes after the Food and Drug Administration of the Department of Health endorsed the updated list.

The circular covered the inclusion of certain medicines for hypertension, mental illness, diabetes and high cholesterol.

A total of eight drugs were added to the list, four of which are for the treatment of diabetes.

Some two kinds of medicines are meant for high cholesterol. The BIR also approved one drug each for hypertension and mental illness.

Dosage of the medicines are in the forms of tablets.

In December last year, the BIR included 16 VAT-exempt medicines for cancer, diabetes and mental illness.

In January 2019, the government started implementing the VAT exemption for prescription drugs used to treat cardiovascular diseases and diabetes.

Data from the Philippine Statistics Authority showed that the top three causes of death in the country last year were heart disease, cancer and cerebrovascular disease, accounting for a combined 40 percent of mortality.