Manila: The Bureau of Internal Revenue (BIR) has called on the public to report pharmacies that continue to impose value-added tax (VAT) on medicines that are exempted, in light of Revenue Memorandum Circulars (RMC) Nos. 59-2025 and 62-2025, which expanded the list of VAT-exempt medicines.
According to Philippines News Agency, BIR Commissioner Romeo Lumagui Jr. stated that the agency has been receiving numerous reports from consumers about non-compliance by some pharmacies. Lumagui encouraged the public to report these non-compliant pharmacies directly to the BIR via [email protected]. The BIR chief also highlighted that complaints could be filed with the Food and Drug Administration (FDA) and the Department of Trade and Industry (DTI), with reports needing to include the establishment's name, address, and receipt details for swift action.
Lumagui emphasized that the exemptions are already active following the BIR's circulation of the relevant issuances. RMC No. 59-2025, issued on June 11, 2025, outlines the latest list of VAT-exempt medicines, incorporating recommendations from the FDA. These exempted medicines include essential maintenance and life-saving drugs, forming part of government efforts to make essential medical treatment affordable.
He detailed that the new issuances add 19 drugs used to treat cancer, diabetes, hypertension, high cholesterol, kidney disease, tuberculosis, and mental illness to the list of VAT-exempt medicines. These medicines are now exempt from VAT, a step aimed at reducing the financial burden on patients.
Lumagui assured the public of the BIR's vigilant monitoring of pharmaceutical companies and retailers, in coordination with the FDA, Department of Health (DOH), and DTI, to ensure compliance. He also mentioned ongoing coordination with the FDA and DOH to further expand the list of VAT-exempt medicines.
The VAT exemptions for select health products are granted under Section 12 of Republic Act (RA) 11534, or the CREATE Act, and RA 10963, or the TRAIN Law. These exemptions become effective upon the FDA's official advisory issuance endorsing the updated list of exempted medicines.
