Bureau of Internal Revenue Commissioner Romeo Lumagui, Jr. issued on Dec. 3, 2024 Revenue Memorandum Circular No. 131-2024 exempting from value added tax certain medicines for cancer, diabetes and mental illness.
The circular was issued in response to the updated list of VAT-Exempt Products from the Food and Drug Administration under Republic Act No. 10963 and 11534.
The BIR said in a statement it was exempting cancer medicines Degarelix and Tremelimumab from VAT.
Meanwhile, diabetes medicines now exempted from VAT include Sitagliptin and Linagliptin.
The BIR said for those struggling with their mental health, Clomipramine hydrochloride, Chlorpromazine, and Midazolam are now VAT-free.
The BIR in January exempted 21 medicines for cancer, diabates and hypertension from VAT. It exempted 20 more in March and another 15 in August.
Cancer and diabetes are some of the leading causes of death in the Philippines, where the cost of medicines is often prohibitive for the poor.
“The BIR exempts from VAT an additional 16 medicines for cancer, diabetes, and mental illness. Excellent Taxpayer Service includes the timely tax exemption of eligible medicines. The BIR supports the national government’s thrust of more affordable medicine and healthcare. The BIR will do its share in uplifting the lives of our fellow Filipinos.” Lumagui said.
This is an update to the list of VAT-exempt drugs and medicines under Section 109(AA) of the National Internal Revenue Code of 1997 as amended the TRAIN Law and CREATE Act.