The situation, in brief
The Bureau of Internal Revenue (BIR), in coordination with the Food and Drug Administration (FDA), has made 2,277 medicines VAT-exempt, covering treatments for cancer, diabetes, hypertension, and kidney disease, with the list continuing to grow as more drugs are endorsed for exemption, BIR…
The Bureau of Internal Revenue (BIR), in coordination with the Food and Drug Administration (FDA), has made 2,277 medicines VAT-exempt, covering treatments for cancer, diabetes, hypertension, and kidney disease, with the list continuing to grow as more drugs are endorsed for exemption, BIR Commissioner Charlito Mendoza said Saturday.
Mendoza made the disclosure in an interview on DZRH News program Special on Saturday on August 8, as part of the DZRH SONA 2026 Series featuring the Department of Finance (DOF).
“Sa kasalukuyan po ay nakapagtala na tayo ng 2,277 VAT-exempt medicines. Ito po ‘yung mga gamot sa cancer, diabetes, hypertension, kidney disease,” Mendoza said, adding that the list is not static and will continue to expand as the FDA endorses more drugs for VAT exemption.
He said the VAT exemption means patients and their families no longer have to pay the 12% value-added tax on these essential medicines, directly reducing the cost of treating chronic and life-threatening conditions that affect millions of Filipinos.
Mendoza said the FDA plays a critical role in the process, as it is the agency that formally endorses which drugs should be granted VAT-exempt status, with the BIR then implementing the exemption once a drug is on the approved list.
He said every new drug added to the VAT-exempt list represents a real reduction in out-of-pocket health spending for patients, giving both doctors and patients more options when prescribing and purchasing medicines without the added burden of value-added tax.
