BIR adds cancer, hypertension drugs exempt from VAT
At A Glance
- The Bureau of Internal Revenue (BIR) approved the inclusion of 20 medicines to the value-added tax (VAT) exemption list.<br>Included in the 12% VAT-exempt list are 12 medicines for cancer, four for hypertension, and four for mental illness.<br>Cancer and hypertensive diseases were some of the leading causes of deaths in the country last year, data from the Philippine Statistics Authority showed.
An additional list of 20 medicines, including those that treat cancer and hypertension, has been granted exemption from the 12 percent value-added tax (VAT).
Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. has issued a memorandum that will exempt 12 medicines for cancer, four for hypertension, and four for mental illness from VAT.
The expanded list of VAT-exempt medicines was endorsed by the Food and Drug Administration of the Department of Health under the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.
This new list will be added to the 21 medicines that were exempted from VAT earlier this year, with most of them being medicines for treating diabetes and hypertension.
READ MORE: https://mb.com.ph/2024/1/30/21-medicines-granted-vat-exemption-by-bir
Lumagui said that the updating of the VAT-exempt medicines list is part of the BIR’s move to shift from a “collection goal-oriented culture, to a more service-oriented one.”
"The VAT exemption of these medicines for Cancer, Hypertension, and Mental Illness is a step towards a healthier country. The BIR shares the noble intention behind more affordable medicines for the public,” Lumagui said.
"Mas murang gamot para sa lahat ang handog ng Bagong BIR sa Bagong Pilipinas. Maaasahan po ng ating mga kababayan ang tulong ng BIR upang maibsan ang kanilang gastos para sa kinakailangan nilang gamot. Patuloy po ang pagtulong ng BIR sa ating mga mahihirap na kababayan," he added.
[Cheaper medicine for everyone is the BIR's offering to the New Philippines. Our fellow countrymen can count on the BIR to alleviate their expenses for the medicine they need. The BIR will continue to aid our poor countrymen.]
Neoplasm, also known as cancer, was the second leading cause of death in the country from January to September last year with a total of 47,425 recorded deaths, based on data from the Philippine Statistics Authority.
Deaths caused by hypertensive diseases were recorded at 25,036, making it the sixth leading cause of death.
Meanwhile, deaths that are related to mental and behavioral disorders were recorded at 941 while those caused by psychoactive substance use were at 331.