BIR exempts 20 more medicines for cancer, hypertension, mental illness from VAT
The Bureau of Internal Revenue (BIR) has exempted from value-added tax more medicines for cancer, hypertension, and mental illness.
In a list obtained by BusinessWorld, the BIR listed 20 medicines with varying dosages and forms like capsule, film-coated tablet, and powder or concentrate for solution via intravenous infusion.
The exemption was issued following an endorsement from the Food and Drug Administration (FDA).
The FDA previously said the exemption aims to alleviate the financial burden on patients, ensuring accessibility to essential medications. It’s in line with Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The BIR began exempting drugs for diabetes, high cholesterol, and hypertension from value-added tax in 2019.
In 2023, the agency exempted 59 medicines.
Last January, it exempted 22 medicines for cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness, tuberculosis, and hypertension.
