Nineteen Maintenance and Lifesaving Medicines Gain VAT Exemption
MANILA, Philippines – Nineteen maintenance and lifesaving medicines have been officially added to the list of drugs exempt from value added tax (VAT), allowing more Filipinos to benefit from lower healthcare costs.
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. announced during a recent briefing that the inclusion follows two separate Revenue Memorandum Circulars (RMCs) issued this June 2025. Nine medicines were added under RMC 59-2025, while the remaining ten fall under RMC 62-2025.
The VAT exemption on these maintenance and lifesaving medicines comes after a recommendation from the Food and Drug Administration (FDA), aiming to ease the financial burden on patients who depend on these essential treatments.
Medicines Cover Various Critical Conditions
Out of the nineteen medicines, seven target cancer treatment. Meanwhile, three medicines each address diabetes, hypertension, and mental illness. The list also includes one medicine for high cholesterol, one for kidney disease, and one for tuberculosis.
“Ang mga ito ay mga maintenance at lifesaving medicines na ngayon ay hindi na papatawan ng VAT. Isang kongkretong hakbang para mas mapagaan ang gastusin ng mga pasyente,” Lumagui said, emphasizing the government’s concrete step to reduce healthcare expenses.
Government Laws Support VAT Exemptions on Medicines
Lumagui highlighted that both the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and the Tax Reform for Acceleration and Inclusion (TRAIN) law provide VAT exemptions on certain health products. These laws aim to make vital medicines more affordable for the public.
The BIR is working closely with the FDA and the Department of Trade and Industry (DTI) to ensure pharmaceutical companies and drugstores comply with these price regulations, making sure the VAT exemption benefits reach the consumers.
Ensuring Benefits Reach the People
“(Ito ay) upang masiguradong maipapasa ang benepisyo, naipapasa ang benepisyo sa mga mamamayan,” Lumagui added, underlining the commitment to pass the savings directly to patients.
Consumers and the public are encouraged to report any violations or failure to comply with the VAT exemption policy. Complaints can be filed with the BIR, FDA, or DTI through their respective official channels.
For more news and updates on maintenance and lifesaving medicines, visit Filipinokami.com.