The Bureau of Internal Revenue (BIR) has added 21 medicines for conditions like diabetes and hypertension to the list of those exempt from value-added tax (VAT).

BIR Commissioner Romeo Lumagui Jr. said that two cancer drugs, five for diabetes, two for high cholesterol, five for hypertension, four for kidney disease, one for mental illness, and two for tuberculosis are now exempt from the 12 percent VAT.

The expanded VAT exemption was implemented through Revenue Memorandum Circular No. 17-2024, following a request from the Food and Drug Administration of the Department of Health to update the list of VAT-Exempt Products under Republic Act No. 10963 and 11534.

"Updating the list of VAT-exempt medicines is part of Taxpayer Service. We will update taxpayers as soon as possible of exemptions given to them by existing laws,” Lumagui said in statement.

This new list adds to the 59 medicines that were previously exempted from VAT last year, with nearly half of them being used in cancer treatment. 

"Ito ang handog ng BIR sa Bagong Pilipinas, serbisyong mabilis at maaasahan. Ito pong 21 na gamot na tinanggalan ng VAT ay simula pa lamang ng mga serbisyong aming ibibigay ngayong 2024," Lumagui said.

[This is the offering of BIR for the Bagong Pilipinas—quick and reliable service. These 21 medicines that have been exempted from VAT are just the beginning of the services we will provide in 2024.]

According to data from the Philippine Statistics Authority, heart diseases, diabetes, and tuberculosis were among the leading causes of death in the country.