BIR: MORE CANCER, DIABETES, MENTAL ILLNESS MEDICINES EXEMPTED FROM VAT

16 more medicines for cancer, diabetes, and mental illness are exempted from VAT according to BIR providing more affordable medicines to Filipinos (Photo courtesy of Philippine Daily Inquirer)

The Bureau of Internal Revenue (BIR) on Monday, said it was exempting 16 more medicines for cancer, diabetes, and mental illnesses from value-added tax (VAT).

In a statement, the BIR said it updated the list of VAT-exempt medicines to include those for cancer — Degarelix freeze-dried powder with 80 milligrams (mg) and 120 mg, and Tremelimumab concentrates with 25 mg and 300 mg dosages Under Revenue Memorandum Circular (RMC) 131-2004.

Meanwhile, the diabetes medicines now exempted from VAT include Sitagliptin and Linagliptin film-coated tablets. For those struggling with their mental health, Clomipramine Hydrochloride, Chlorpromazine, and Midazolam are also now VAT-free.

The BIR in January exempted 21 medicines for cancer, diabetes, and hypertension from VAT. It exempted 20 more in March, and another 15 in August. Cancer and diabetes are some of the leading causes of death in the Philippines, where the cost of medicines is often prohibitive for the poor.

The BIR said the additional exemptions were made in response to the updated list of VAT-exempt products from the Food and Drug Administration.

“The BIR is now a service-oriented agency, this includes the regular update of medicines that will fall under VAT-exempt products,” BIR Commissioner Romeo Lumagui said in a statement.

“The BIR supports the national government’s thrust of more affordable medicine and healthcare. The BIR will do its share in uplifting the lives of our fellow Filipinos,” Lumagui added.

The VAT exemptions apply to the sale by manufacturers, distributors, wholesalers and retailers of the medicines and aims to make certain medicines more affordable to consumers.

Source: GMA Integrated News 

Be part of ImHenyo community!

Get featured by sharing your stories, news, and comments

Email us at [email protected]