The Food and Drug Administration (FDA) has issued an advisory announcing the inclusion of additional medicines for cancer, diabetes, and mental health in its list of products exempt from value-added tax (VAT).
In its advisory released on Monday, Nov. 25, the FDA explained the new exemptions are in line with Section 12 of Republic Act No. 11534, known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which provides VAT exemptions for specific health products, including medications for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes, and high cholesterol.
The newly added medicines are:
Cancer treatments: Degarelix 80 mg and 120 mg, Tremelimumab 25 mg/1.25 mL (20 mg/mL), and Tremelimumab 300 mg/15 mL (20 mg/mL)
Diabetes medications: Sitagliptin 25 mg, Sitagliptin (as hydrochloride) + Metformin Hydrochloride 50 mg/1 g, Sitagliptin (as hydrochloride) + Metformin Hydrochloride (50 mg/850 mg), Sitagliptin (As Hydrochloride) 25 mg, Sitagliptin (As Hydrochloride) 50 mg, Sitagliptin (As Hydrochloride) 100 mg, Sitagliptin (as hydrochloride monohydrate) 25 mg, Sitagliptin (as hydrochloride monohydrate) 50 mg, and Linagliptin 5 mg
Mental health drugs: Clomipramine Hydrochloride 25 mg, Chlorpromazine (as hydrochloride) 200 mg and Midazolam 15 mg
Under the CREATE Act, the FDA is tasked with identifying and endorsing health products that qualify for VAT exemption.
Once identified, the FDA transmits the list of VAT-exempt medicines to other implementing agencies, such as the Bureau of Internal Revenue (BIR), Bureau of Customs, and Department of Trade and Industry.
Last January, BIR also granted VAT exemptions to 21 medicines used to treat cancer, diabetes, and hypertension.
READ MORE: https://mb.com.ph/2024/2/20/fda-updates-list-of-vat-exempt-medicines