The Bureau of Internal Revenue (BIR) has expanded the number of medicines exempted from value-added tax (VAT) in a bid to give financial relief to Filipinos ailing from cancer, diabetes and mental illness.
BIR commissioner Romeo Lumagui, Jr. said the agency’s Under Revenue Memorandum Circular (RMC) 131-2004 removed VAT from 16 medicines used for treating the three common but often costly diseases.
“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,” the official said in a statement on Monday.
Declared VAT-exempt were Degarelix freeze-dried powder with 80 milligrams (mg) and 120 mg, and Tremelimumab concentrates with 25 mg and 300 mg dosages.
It also exempted more medicines for diabetes including Sitagliptin and Linagliptin film-coated tablets.
Also included in the VAT-free medicines are drugs used to treat mental illnesses such as Clomipramine Hydrochloride tablets, and Midazolam film-coated tablets.
Lumagui said the additional exemptions were made in response to the updated list of VAT-exempt products from the Food and Drug Administration.
From January to August this year, the BIR declared VAT-exempt some 56 medicines used for treatment of cancer, diabetes and hypertension.