BIR: More medicines exempted from VAT

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has issued an updated list of value added tax (VAT)-exempt medicines for various diseases, including cancer.

In a revenue memorandum circular, the BIR approved the list of products exempted from 12 percent VAT under the Tax Reform for Acceleration and Inclusion Law and Corporate Recovery and Tax Incentives for Enterprises Act.

The Food and Drug Administration of the Department of Health endorsed the list.

The update aims to enhance access to critical medications by reducing treatment costs for patients.

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

Ten drugs were added to the list, three of which are for the treatment of mental illness.

Two kinds of medicines each for cancer, diabetes and hypertension are now also VAT-exempt. Another drug was also included for high cholesterol.

Earlier this month, the BIR listed nine VAT-exempt medicines for cancer, kidney disease, tuberculosis, hypertension and diabetes.

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

The VAT exemptions apply to the sale by manufacturers, distributors, wholesalers and retailers of medicines.

The VAT exemption aims to make medicines more affordable to consumers, the BIR said.