Ilocos Norte Gov. Imee Marcos on Tuesday called for the exemption from the value added tax (VAT) of all medical drugs to make health services more affordable to the Filipino people as she sought a congressional review of the Cheaper Medicines Act.
“For 2019, I would want the removal of VAT on medicines,” said Marcos, the only local executive running for senator in the coming midterm elections.
Marcos lamented that the Cheaper Medicines Act, or the Universally Accessible Cheaper and Quality Medicines Act of 2008, failed to make medicines more affordable to the people because of provisions included in the law that favor the interests of big pharmaceutical companies in the country.
“We need to revise the Cheaper Medicines Act and make it more people-friendly as originally intended,” Marcos said.
“No Filipino must die of sickness because of the prohibitive cost of medicines,” she added.
The Cheaper Medicines Act was enacted into law with the end-goal of making medicines more affordable and accessible to the people, especially the poor who cannot afford to buy expensive prescription drugs for their illnesses.
But 10 years after the law was passed, prices of medical drugs, especially for critical diseases and illnesses, remain exorbitant.
Marcos said that to drastically bring down the prices of medicines, removing the VAT imposed on all medical drugs was necessary.
She said the VAT exemption on the sale of vital medicines for diabetes, cholesterol and hypertension would not be enough.
The Tax Reform for Acceleration and Inclusion Act, or TRAIN Law, mandates the removal of the 12 percent VAT on medicines for diabetes, high cholesterol and hypertension.
The exemption took effect on Jan. 1, 2019.
The VAT exemption will apply to the “sale by manufacturers, distributors, wholesalers and retailers” of the medicines, which will be identified by the Food and Drug Administration.