9 more essential medicines exempted from VAT

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

In its Advisory No. 2025-0498, the FDA endorsed nine more medicines that must be VAT-exempt as provided by Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The move aims to make the medicines affordable to the public.

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

The agency added, “In this regard, provided below are the latest updates on the list of VAT-exempt health products pursuant to RA No. 11534, effective upon the issuance of this advisory.”

Included in the list are medicines for cancer: Bortezomib 3.5 mg (powder for injection); Docetaxel (as trihydrate) 20 mg/mL (80 mg/4mL) (concentrate for solution for IV infusion); Lenvatinib (as mesylate) 10 mg (hard gelatin capsule) and 4 mg (capsule); Lenalidomide 7.5 mg and 20 mg (capsule); and Paclitaxel 6 mg/mL (60 mg/10mL) (solution for injection), 6 mg/mL (100.2 mg/16.7 mL) (solution for injection), and 300 mg/2.73 mL (concentrate solution for IV infusion).

Meanwhile, medicine for diabetes added to the list is Saxagliptin (as hydrochloride) + Dapagliflozin (as propanediol monohydrate) 5 mg/10 mg (film-coated tablet).

For hypertension, added is Losartan potassium + Rosuvastatin (as calcium) + Amlodipine (as camsilate) 100 mg/ 20 mg/ 5 mg, 100 mg/ 10 mg/ 5 mg, 50 mg/ 20 mg/ 5 mg, 50 mg/ 10 mg/5 mg (film-coated tablet).

Also included is medicine for kidney disease: Peritoneal Dialysis Solution with 2.5 percent Dextrose. Each 100 mL (formulation) contains: Dextrose Anhydrous BP 2.5g, Sodium Chloride BP 538 mg, Sodium Lactate BP 448 mg, Calcium Chloride BP 25.7 mg, Magnesium Chloride BP 5.08 mg (dialysis solution – intraperitoneal).

For tuberculosis, added to the list is Rifampicin + Isoniazid + Pyrazinamide 75 mg/ 50 mg/ 150 mg (dispersible tablet).

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

According to the law, the FDA should identify and transmit the list of VAT-exempt health products to other implementing agencies, such as the Bureau of Internal Revenue, Bureau of Customs and Department of Trade and Industry.