MANILA: The Bureau of Internal Revenue (BIR) has added 14 more medicines for serious and chronic illnesses to the list of value-added tax (VAT)-exempt drugs, following President Ferdinand Marcos Jr's announcement in his State of the Nation Address (Sona) that the roster had already surpassed 2,000.
Under Revenue Memorandum Circular No. 87-2026, the BIR said the number of VAT-exempt medicines had reached 2,277 as of Aug 4, up from 2,263 in April.
The update comes after Mr Marcos, in his fifth Sona, highlighted that more than 2,000 medicines are now exempt from VAT as part of his administration's efforts to expand access to healthcare, alongside programmes being implemented by the Department of Health and the Philippine Health Insurance Corp.
"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," BIR Commissioner Charlito Mendoza said in a statement on Wednesday.
Broken down, the number of VAT-exempt cancer medicines increased to 708 from 702, while diabetes medicines rose to 331 from 327.
Medicines for hypertension also increased to 537 from 535, while those for tuberculosis went up to 77 from 76.
Economical options
The number of VAT-exempt medicines for high cholesterol rose to 172 from 171, while those for kidney disease and mental illness remained unchanged at 152 and 300, respectively.
According to the circular, the updated list supersedes previous issuances and will remain in effect until the Food and Drug Administration releases further revisions.
The VAT exemption is implemented under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act, as amended by Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act.
The BIR said the expanded list is expected to help reduce Filipinos' out-of-pocket medical expenses.
The latest data from the Philippine Statistics Authority showed that household out-of-pocket health spending continued to rise in 2025.
Expenses borne directly by households accounted for 41.2 per cent of the country's current health expenditure, increasing by 7.3 per cent to P714.6 billion from P666.2 billion a year earlier. - Inquirer/ANN
