The Bureau of Internal Revenue (BIR) has exempted 16 more medicines for cancer, diabetes, and mental illnesses from the value-added tax (VAT).
The VAT exemption was made effective through the issuance of Revenue Memorandum Circular No. 131-2024.
“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,” BIR Commissioner Romeo Lumagui Jr. said.
He said the new memorandum circular carries out the goals of the amended Tax Reform for Acceleration and Inclusion, and the Corporate Recovery and Tax Incentives for Enterprises Act which are to lighten the financial burden on the poor while raising government funds for its massive infrastructure program and social projects.
The additional VAT-exempt medicines are Degarelix and Tremelimumab for cancer.
For diabetes, the exemption applies to Sitagliptin (hydrochloride) plus Metformin Hydrochloride, Sitagliptin (hydrochloride), Sitagliptin (hydrochloride monohydrate and Linagliptin.
For mental illnesses, the VAT-exempt medicines include Clomipramine Hydrochloride, Chlorpromazine (hydrochloride) and Midazolam.
The VAT-exemption is available for various dosage strengths and forms of each of the medicines.