Close this search box.

BIR adds VAT exempt medicines

by Kiko Cueto

THE Bureau of Internal Revenue said that they had included some 16 medicines that are not value-added tax or VAT-exempt.

Among them includes medicines for diseases such as cancer, hypertension and diabetes.

Some sixteen items have been added to the list of medications exempt from the 12 percent VAT, which include medicines for cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness and tuberculosis.

According to the Food and Drug Administration, they endorsed the updated list, which was approved by the BIR under the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.

Likewise, the BIR has removed Macitentan film-coated tablets from the list following the recommendation of the Department of Health.

The government had implemented VAT exemption for prescription drugs used to treat cardiovascular diseases and diabetes in January 2019.

The exemptions apply to the medicine sale by manufacturers, distributors, wholesalers and retailers.



We have the stories you’ll want to read.

RepublicAsia Newsletter