DOH to pharmacies: Exempt maintenance meds from VAT

MANILA, Philippines — The Department of Health (DOH) has warned pharmacies and drug stores to strictly implement the exemption of medicine for diabetes, high cholesterol and hypertension from value-added tax (VAT) or face the consequences.

Health Secretary Francisco Duque III said all drug outlets in the country should comply with the provisions in the Tax Reform for Acceleration and Inclusion (TRAIN) law on the exemption. 

“We have to make sure that the provisions of the law are complied with as strictly as possible… Our call is for them to follow the law so that they won’t be facing any problems,” he added.

The exemptions took effect after the Department of Finance and the Bureau of Internal Revenue released last month the BIR Revenue Regulation 25-2018, which contains the implementing rules and regulations. 

Duque noted that the DOH and its attached agency, the Food and Drug Administration, would have regulatory and oversight functions in the implementation of the law, which provides that starting Jan. 1, medicine for diabetes, high cholesterol and hypertension should not be charged the 12-percent VAT.

He said the policy is expected to address the country’s problems on non-communicable diseases that are addressed by the drugs covered by the exemption. 

“These are the most common maintenance medications for which a lot of our people are spending a lot of money,” he maintained.