DOF orders immediate VAT exemption for cancer, diabetes, hypertension meds
By Derco Rosal
Department of Finance (DOF) Secretary Ralph G. Recto has ordered the swift implementation of the value-added tax (VAT) exemption on the expanded list of medicines for cancer, diabetes, and hypertension.
Recto, President Marcos’ chief economic manager, has addressed this mandate to the Bureau of Internal Revenue (BIR). Aside from the mentioned illnesses, dialysis, high cholesterol, and mental illnesses will also be VAT-free as soon as the law takes effect.
On June 4, the BIR released the updated list of medicines exempt from the 12-percent VAT, following the expanded list issued by the Food and Drug Authority (FDA).
Specifically, among the newly VAT-exempt cancer medicines is the combination drug Tegafur with Gimeracil and Oteracil Potassium.
For diabetic individuals, Metformin Hydrochloride combined with Teneligliptin is also now exempt from VAT.
Patients with high cholesterol can now get Atorvastatin combined with Fenofibrate VAT-free, while those with high blood pressure can access Metoprolol Tartrate plus Ivabradine without VAT.
Lamotrigine, used to treat mental illnesses, is also exempt from tax.
The Tax Reform for Acceleration and Inclusion Act (R.A. 10963) and the Corporate Recovery and Tax Incentives for Enterprises Act (R.A. 11534) paved the way for expanding the list of VAT-exempt medicines.
According to the DOF, the expansion of the list of VAT-free medicines “significantly reduces out-of-pocket costs for Filipino patients.”
“This is a huge relief for Filipinos, especially for the underprivileged who cannot afford expensive medicines. We’re not just helping ease their expenses—we’re also giving them hope to recover and complete their treatment,” Recto said, further ensuring affordable healthcare in the country.