16 more drugs exempted from VAT

MANILA, Philippines — The Food and Drug Administration (FDA) has added 16 more drugs to the list of essential medicines that are exempted from value-added tax (VAT) as mandated by law.

In FDA Advisory 2024-1618 date-stamped Nov. 22, the agency listed 16 more medicines that must be VAT-exempt as provided under Republic Act (RA) 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The move meant making the medicines affordable to the public.

“The FDA is directed to identify and transmit the VAT-exempt health products to other implementing agencies,” the agency said.

“In this regard, provided below are the latest updates on the list of VAT-exempt health products pursuant to RA 11534, effective upon the issuance of this advisory,” it added.

Added to the list are medicines for cancer, namely degarelix 80 milligrams, degarelix 120 mg, tremelimumab 25 mg/1.25 milliliters (20 mg/mL) and tremelimumab 300 mg/15 mL (20 mg/mL).

Also added are medicines for diabetes, namely sitagliptin 25 mg, sitagliptin (as hydrochloride) + metformin hydrochloride 50 mg/1 g, sitagliptin (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 and linagliptin 5 mg.

Medicines for mental illnesses, namely clomipramine hydrochloride 25 mg, chlorpromazine (as hydrochloride) 200 mg and midazolam 15 mg  are also included in the list.

Meanwhile, the FDA said it is removing from the VAT-exempt list under medicines for cancer the drug product Human chorionic gonadotropin 5000 IU (previously identified as chorionic gonadotrophin).

The FDA explained that the drug is indicated as treatment for “anovulatory infertility or oligo-ovulatory and superovulation in women,” and “treatment of hypogonadism, cryptorchism and delayed puberty associated with insufficient gonadotropic pituitary function in male.”

“Hence, it is not classified as treatment for cancer, and shall be delisted from the subject list,” the FDA noted.

Under the CREATE law, certain health products, including medicines for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes and high cholesterol shall be exempted from VAT.