BIR releases list of more VAT-exempt medicines
By Jun Ramirez
The Food and Drug Administration (FDA) has submitted to the Bureau of Internal Revenue (BIR) an additional list of medicines used for the treatment of five serious illnesses which are exempted from the 12 percent value-added tax (VAT).
The generic names of these medicines included: Ibandronic (Acid/Sodium and Human Papillomavirus Vaccine (Recombinant /Adjuvanted/Absorbed) for cancer; Bacillus Calmette (BOG) Vaccine and Live Vaccine, BCG Vaccine and Tuberculin Purified Protein Derivative for tuberculosis; Esketamine for mental illnesses; Dapagliflozin+ Metformin Hydrochloride for diabetes; and, Felodipine+Metropolol Succinate for hypertension.
BIR Commissioner Lilia Catris Guillermo forwarded the list to concerned field offices for information and guidance.
The FDA has been updating the list of VAT-exempt drugs since last year after the enactment of the Corporate Recovery and Tax Incentives for Enterprises Act.
The law granted the tax exemption privilege to reduce the financial burden of patients suffering from cancer, tuberculosis, mental illness, hypertension and diabetes.