MANILA, Philippines — The Bureau of Internal Revenue (BIR) has issued an updated list of value added tax (VAT)-exempt medicines for various diseases such as cancer, hypertension and diabetes.
In its latest revenue memorandum circular, BIR approved the list of the 12 percent VAT-exempt products under the Tax Reform for Acceleration and Inclusion Law.
This comes after the Food and Drug Administration of the Department of Health (DOH) endorsed the updated list.
The circular covered the inclusion of certain medicines for cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness and tuberculosis.
A total of 59 drugs were added to the list, with almost half or 25 for the treatment of cancer. Some 11 kinds of medicine are for kidney disease, 10 for diabetes and six for hypertension.
The BIR also approved four more drugs for mental illnesses, two for the treatment of high cholesterol and one for tuberculosis.
Dosages of the medicines are in forms of concentrate for solution for infusion, tablets, powder for injection, capsules, granules for oral solution and dialysis solution.
The BIR removed Ixekizumab solution for injection from the list following the recommendation of the DOH.
Upon evaluation of the certificate of product registration and package insert of the drug, it was approved as an interleukin inhibitor indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates of systemic therapy.
This means that the drug is no longer classified as a treatment for cancer.
It was in January 2019 when the government started implementing VAT exemption for prescription drugs used to treat cardiovascular diseases and diabetes.
The VAT exemption aims to make certain medicines more affordable to consumers.
Data from the Philippine Statistics Authority showed that the top three causes of death in the country last year were heart disease, cancer and cerebrovascular disease, accounting for a combined 40 percent of mortality.
Earlier this week, Finance Secretary Benjamin Diokno said the government is revisiting the implementation of the VAT system in the country, as he pushes for the repeal of some exemptions.
Former finance chief Carlos Dominguez previously called on the Marcos administration to retain the coverage of VAT exemptions to just a few purchases only, including agricultural, food and medical products.
By eliminating the exemptions, the government can gain P142.5 billion every year.
Diokno said he went along with that proposal, with the Department of Finance planning to release the list of items that would no longer enjoy VAT exemption before yearend.
“There are some worthwhile exemptions. We will review those and revisit once and for all which ones are reasonable,” Diokno said.