September 7, 2024 | 12:00am
MANILA, Philippines — The Bureau of Internal Revenue (BIR) has issued an updated list of value-added tax (VAT)-free medicines for diseases such as cancer, diabetes and tuberculosis.
In a memorandum circular, the BIR approved 14 medicines exempted from the 12 percent VAT under the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.
The list was endorsed by the Food and Drug Administration of the Department of Health.
The circular covered the inclusion of medicines for cancer, hypertension, mental illness, diabetes, tuberculosis and kidney ailments.
Of the 14 medicines that are VAT-free, four are for hypertension. These are Losartan Potassium, Candesartan, Losartan Potassium with Amlodipine and Candesartan Cilexetil.
Three medicines for diabetes exempted from VAT are Linaglipitin, Sitaglipitin and Metformin Hydrochloride.
Two more drugs for kidney disease (Finerenone 10 mg and Finerenone 20 mg), one for cancer (Denosumab) and another for tuberculosis (Bedaquiline) are now VAT-free.
For mental illness, the VAT-free drugs are Desvenlafaxine, Lurasidone Hydrochloride and Quetiapine.
The medicines are in the forms of tablets and solutions for injection.
Last week, the BIR included 15 VAT-exempt medicines for cancer, hypertension, high cholesterol and mental illness.
In January 2019, the government implemented VAT exemption for prescription drugs used to treat cardiovascular diseases and diabetes.
The VAT exemptions apply to the sale by manufacturers, distributors, wholesalers and retailers of the medicines.
It aims to make medicines more affordable to consumers, the BIR said.
Data from the Philippine Statistics Authority showed that the top three causes of death last year were heart disease, cancer and cerebrovascular illness, accounting for a combined 40 percent of mortality.
Unregistered drugs seized
Meanwhile, three persons were arrested by the National Bureau of Investigation (NBI) for allegedly selling unregistered medicines and other health products in Manila recently.
Zhang Lei, Rowena Agaudaña Alfanta and Rhila Bencalo Barrios were nabbed during an entrapment operation in a condominium building in Malate.
The NBI said the establishment was operating as a drug outlet without a license from the Food and Drug Administration. — Mark Ernest Villeza
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