Metro Manila, Philippines – The Bureau of Internal Revenue (BIR) has expanded the list of value-added tax (VAT)-exempt medicines to 2,277 products, adding 14 more medicines to help reduce healthcare costs for Filipinos.
The updated list was published under Revenue Memorandum Circular No. 87-2026, which implements the VAT exemption for medicines endorsed by the Food and Drug Administration under the TRAIN Law and the CREATE Act.
BIR Commissioner Charlito Martin Mendoza said the expanded list is intended to make essential medicines more affordable while supporting the government’s healthcare agenda.
“The Bureau remains steadfast in implementing tax policies that directly benefit our people. By expanding the list of VAT-exempt medicines, we are helping make essential healthcare more affordable while supporting the President’s vision of a healthier and more resilient Philippines,” Mendoza said in a statement.
The BIR said the updated list includes medicines used to treat cancer, hypertension, diabetes, mental illness, high cholesterol, kidney disease and tuberculosis.
Cancer medicines account for the largest share with 708 VAT-exempt products, followed by medicines for hypertension (537), diabetes (331), mental illness (300), high cholesterol (172), kidney disease (152) and tuberculosis (77).
The bureau said expanding the list is expected to reduce out-of-pocket healthcare expenses, particularly for patients undergoing long-term treatment for chronic and life-threatening diseases.
The issuance comes after President Ferdinand Marcos Jr., in his fifth State of the Nation Address, called for greater access to quality healthcare and lower medicine costs.
The VAT exemption for selected medicines was first introduced under the Tax Reform for Acceleration and Inclusion (TRAIN) Act and later expanded under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, allowing qualified medicines certified by the FDA to be sold without the 12% value-added tax.
The BIR said the updated list takes effect immediately upon publication of the circular.
