Two additional cancer medicines now VAT-exempt

Two more cancer drugs have been added to the VAT-exempt list, according to the latest advisory issued by the Food and Drug Administration.

In an advisory dated July 8, the FDA announced that Nimotuzumab, a solution for intravenous infusion, and Ruxolitinib phosphate tablets are now exempt from VAT. The move forms part of the government’s efforts to make essential medicines more affordable and accessible to Filipinos battling serious illnesses.The 

FDA said the latest exemption is in accordance with Republic Act No. 11534, also known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

Under Section 12 of the CREATE Act, VAT exemption is granted to drugs and medicines for cancer, diabetes, high cholesterol, hypertension, kidney diseases, mental illness, and tuberculosis.

Under the law, the FDA is also mandated to identify and transmit the official list to the implementing agencies, namely, the Bureau of Internal Revenue, the Bureau of Customs, and the Department of Trade and Industry.

The FDA is a regulatory agency under the Department of Health, created under Republic Act No. 3720, series of 1963, also known as the “Food, Drugs and Devices, and Cosmetics Act."

According to its website, the agency "is mandated to ensure the safety, efficacy, or quality of health products which include food, drugs, cosmetics, devices, biologicals, vaccines, in-vitro diagnostic reagents, radiation-emitting devices or equipment, and household/urban hazardous substances, including pesticides and toys, or consumer products that may have an effect on health which require regulations."