Manila: More than 2,200 medicines are now exempted from value-added tax (VAT), the Bureau of Internal Revenue (BIR) said Wednesday. The BIR issued Revenue Memorandum Circular (RMC) No. 87-2026, publishing the updated list of 2,277 VAT-exempt medicines endorsed by the Food and Drug Administration (FDA) pursuant to Republic Act 10963 (TRAIN law) and Republic Act 11534 (CREATE Act).
According to Philippines News Agency, the BIR's issuance supports President Ferdinand R. Marcos Jr.'s directive during his fifth State of the Nation Address to expand access to quality healthcare by reducing the cost of essential medicines. The bureau detailed that of the total number of VAT-exempt medicines, 708 are for cancer, 537 for hypertension, 331 for diabetes, 300 for mental illness, 172 for high cholesterol, 152 for kidney disease, and 77 for tuberculosis.
The expanded coverage aims to reduce out-of-pocket medical expenses, particularly for Filipinos undergoing long-term treatment for chronic and life-threatening illnesses. BIR Commissioner Charlito Mendoza emphasized the bureau's commitment to implementing tax policies that directly benefit the population. By expanding the list of VAT-exempt medicines, the BIR is aiding in making essential healthcare more affordable while supporting the President's vision of a healthier and more resilient Philippines.
