Manila: The Bureau of Internal Revenue (BIR) has announced that 10 additional medicines for conditions such as cancer, high cholesterol, hypertension, and mental illness are now exempt from value-added tax (VAT).
According to Philippines News Agency, Commissioner Romeo Lumagui Jr. issued Revenue Memorandum Circular No. 62-2025 on June 20, which further expands the list of VAT-exempt medications. The BIR aims to enhance access to essential medicines and reduce treatment costs for patients and their families through these changes.
The newly exempted medicines include Tegafur + Gimeracil + Oteracil Potassium for cancer, Metformin Hydrochloride + Teneligliptin for diabetes, Atorvastatin (as calcium) + Fenobribrate for high cholesterol, Metoprolol tartrate + Ivabradine (as hydrochloride) for hypertension, and Lamotrigine for mental illness. This VAT exemption is in accordance with Republic Act No. 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law, and Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The exemptions are intended to be responsive to current public health needs and are guided by the latest evaluations from the Food and Drug Administration. Commissioner Lumagui emphasized the importance of affordable medicine access as part of the BIR's Excellent Taxpayer Service initiative.
