Patients being treated for cancer, kidney disease, and five other serious conditions will see slightly lower medicine costs after tax authorities widened the roster of drugs cleared of value-added tax.
The Bureau of Internal Revenue (BIR) formalized the change through Revenue Memorandum Circular 87-2026, released Tuesday. The circular instructed revenue officials, staff, and other concerned parties that the Food and Drug Administration had submitted a revised inventory of medicines qualifying for VAT exemption under two laws: the Tax Reform for Acceleration and Inclusion (Train) Law and the Corporate Recovery and Tax Incentives for Enterprises (Create) Act.
With 14 medicines newly added, the exempt inventory now totals 2,277 products.
Cancer treatment accounts for the biggest share, with 708 medicines qualifying. Hypertension follows at 537, then diabetes at 331 and mental illness at 300. High cholesterol covers 172 medicines, kidney disease 152, and tuberculosis 77.
Those seven categories, cancer, hypertension, diabetes, mental illness, high cholesterol, kidney disease, and tuberculosis, define the scope of the relief.
BIR Commissioner Charlito Martin Mendoza framed the update as part of a broader health agenda. “By expanding the list of VAT-exempt medicines, we are helping make essential health care more affordable while supporting the President’s vision of a healthier and more resilient Philippines,” he said.
