The Value-Added Tax (VAT) is one of the major sources of revenue of the national government. This 12 percent tax is collected on sales and leases of goods or properties, on imports, on services, etc. There are many exemptions, including sales or importations of agricultural goods such as livestock for breeding, rice and corn grits, seeds and fertilizers, hospital services but not those of professionals, educational services, sales of books and newspapers, bank services, and fuel imports. Many exemptions have been enacted by Congress over the years, notably for senior citizens and persons with disabilities. Last year, the Tax Reform for Acceleration and Inclusion Act (TRAIN) further amended the VAT system. TRAIN  exempted prescription medicine for diabetes, hypertension, and high cholesterol from payment of the 12 percent VAT, starting January 1. 2019.  Secretary of Health Francisco Duque III has thus reminded pharmacies to extend the discounts to patients with these three health conditions because of the new VAT exemption. Last week, exemption from VAT of all medical drugs, not just for diabetes, hypertension, and high cholesterol,  to make health services more affordable to all Filipinos, not just senior citizens and people with disabilities, was sought by  Ilocos Norte Gov. Imee Marcos. We need to revise the Cheaper Medicines Act to make it more people-friendly as originally intended, she said, and total exemption from VAT for all medicines will help achieve this goal. TRAIN repealed 54 out of 61 special laws granting exemptions from VAT to make the system fairer. There may be other sectors of the nation – poor and low-income Filipinos and small and micro businesses – that need government help in the form of VAT exemptions. In this new year, Congress will be enacting major measures providing huge funds for the economic development of the nation as a whole. It should devote some attention to other measures that will benefit poor ordinary Filipinos, especially those in great need of more affordable medicine for their health and well-being.