BIR adds 16 medicines to VAT-free list


The Bureau of Internal Revenue (BIR) has expanded its support for affordable health care by exempting 16 additional medicines for cancer, diabetes, and mental illness from Value Added Tax (VAT).

In a statement, the BIR said this move aligns with the latest list of VAT-exempt products approved by the Food and Drug Administration (FDA) under the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

In Revenue Memorandum Order No. 131, BIR Commissioner Romeo D. Lumagui said that the exemption aims to make life-saving treatments for these conditions more accessible to Filipinos.

“The BIR is committed to ensuring that vital medicines for cancer, diabetes, and mental health are within reach for more people,” Lumagui stated.

The generic names of newly exempted medicines include specific treatments for cancer, such as degarelix (80 mg and 120 mg) and tremelimumab (20 mg and 300 mg).

For diabetes, the list covers sitagliptin (25 mg, 50 mg, and 100 mg), sitagliptin with metformin (50 mg/1 g and 500 mg/850 mg), sitagliptin hydrochloride (25 mg, 50 mg, and 100 mg), and linagliptin (5 mg).

For mental health, the exemptions apply to clomipramine hydrochloride (25 mg and 200 mg) and midazolam (15 mg).