More medicines exempted from VAT

MANILA, Philippines —  The Bureau of Internal Revenue (BIR) has issued an updated list of medicines that are exempt from the 12-percent value-added tax (VAT).

In a memorandum circular, the BIR approved the list of the VAT-exempt products under the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.

The Food and Drug Administration endorsed the updated list.

The circular covered the inclusion of medicines for cancer, kidney disease, tuberculosis, hypertension and diabetes. 

Nine drugs were added to the list, five of which are for the treatment of cancer. 

One medicine was also added for kidney disease, tuberculosis, hypertension and diabetes. 

The newly exempted medicines are in the forms of tablets, powder and solution for injection, concentrate for solution, capsule and dialysis solution. 

Last April, the BIR included eight VAT-exempt medicines for hypertension, mental illness, diabetes and high cholesterol.

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 mortality rate of 40 percent.