The Bureau of Internal Revenue (BIR) has broadened its VAT exemption list to include 15 additional medicines, aiming to ease the financial strain on individuals needing crucial treatments for cancer, high cholesterol, hypertension, and mental health conditions. By eliminating the value-added tax on these vital drugs, the BIR is working to make healthcare more accessible and affordable for many Filipinos.
Expanded VAT Exemptions for Cancer and Cardiovascular Drugs
Under the latest directive, several essential cancer medications are set to become more affordable. Medicines such as Avelumab, Acalabrutinib, Olaparib, and Trastuzumab will no longer incur VAT, potentially reducing the financial burden on cancer patients. For those managing high cholesterol, Rosuvastatin, a commonly prescribed medication, will also benefit from VAT exemption.
Hypertension patients will see relief as well, with VAT being removed from Olmesartan medoxomil, Perindopril, and the combination drug Indapamide + Amlodipine. These changes are expected to lower the cost of managing high blood pressure and improve accessibility to necessary treatments.
Mental Health Medications Added to VAT-Exempt List
The BIR's latest update also includes crucial mental health medications in the VAT-exempt category. Sodium Valproate and Valproic Acid, used in the treatment of various mental illnesses, will now be free from VAT. This move underscores a growing recognition of the importance of making mental health treatments more affordable and accessible.
Continued Efforts to Make Healthcare More Affordable
This recent update follows a similar expansion in March, when the BIR exempted 20 additional medicines from VAT. This new batch of exemptions builds on earlier changes made in January, aligning with Republic Act Nos. 10963 and 11534, which guide the inclusion of more drugs in the VAT-exempt list.
BIR Chief Lumagui highlighted the agency’s evolving role, stating, "The BIR is committed to being a service-oriented agency, which includes regularly updating the list of VAT-exempt products. Our goal is to support the government’s initiative to make healthcare and medicine more affordable for everyone."
