At least 21 medicines for cancer, diabetes, hypertension, kidney disease, mental illness, and tuberculosis (TB) are now exempted from value added tax (VAT), the Bureau of Internal Revenue (BIR) announced Wednesday, Jan. 31.
BIR Commissioner Romeo Lumagui, Jr. issued Memorandum Circular No. 17-2024 to reflect this development upon receiving an endorsement letter to update the same from the Food and Drug Administration (FDA) of the Department of Health (DOH).
The list includes the following prescription drugs and other details:
“Updating the list of VAT-exempt medicines is part of Taxpayer Service. We will update taxpayers as soon as possible of exemptions given to them by existing laws.” Commissioner Lumagui said.
According to the BIR, the FDA endorsed an update on the list of VAT-exempt products under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law and RA No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
“This is an update to the list of VAT-exempt drugs and medicines under Section 109(AA) of the National Internal Revenue Code of 1997, as amended by TRAIN Law and CREATE Act,” the BIR noted in its statement.
