Patients battling chronic and life-threatening conditions may soon find some relief—not just from their ailments but from soaring medical costs—as the Bureau of Internal Revenue (BIR) released an updated list of value-added tax (VAT)-exempt medicines, now including more treatments for cancer, hypertension, diabetes, high cholesterol, and mental illness.
In a new revenue memorandum circular, the BIR formally approved the tax-free status of 10 additional medicines, three of which are dedicated to mental health treatment. The update comes as part of ongoing implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The Food and Drug Administration (FDA), under the Department of Health (DOH), endorsed the new list. The BIR emphasized that the exemption from the 12% VAT is aimed at making critical medications more accessible and affordable.
The latest list includes two medicines each for cancer, hypertension, and diabetes, as well as one drug for high cholesterol. This follows a separate list issued earlier in the month that covered treatments for cancer, kidney disease, tuberculosis, and other chronic conditions.
The VAT exemption applies across the entire supply chain—from manufacturers to retailers—ensuring price reductions reach Filipino consumers directly. Since January 2019, select prescription drugs for cardiovascular diseases and diabetes have been covered under this program.
The BIR reiterated that the move is part of the government’s broader commitment to ease the financial burden on patients needing long-term treatment.
