MORE CANCER, DIABETES, MENTAL ILLNESS MEDICINES EXEMPTED FROM VAT

The FDA endorsed the VAT exemption for additional medicines to help patients suffering from cancer, diabetes, and mental illness (Photo courtesy of Philippine Daily Inquirer)

The government has exempted 17 more cancer, diabetes, and mental health medicines from value-added tax (VAT), days after the signing of the CREATE MORE Act.

In an advisory, the Food and Drug Administration (FDA) has expanded the list of medicines exempted from VAT to ensure accessible treatment of serious illnesses affecting Filipinos reducing their out-of-pocket expenses.

Under FDA Advisory No. 2024-1618 the regulatory body endorsed to the Bureau of Internal Revenue (BIR) an exemption from the 12-percent VAT for eight medicines for diabetes, four medicines for cancer and three for mental illness.

For cancer, the new medicines on the list are:

• Degarelix: Freeze-dried powder for solution for injection (80 mg and 120 mg).

• Tremelimumab: Concentrate for solution for infusion (25 mg/1.25 mL, 20 mg/mL).

For diabetes:

• Sitagliptin: Film-coated tablet (25 mg, 50 mg, 100 mg).

• Sitagliptin (as hydrochloride) + Metformin Hydrochloride: Film-coated tablet (50 mg/1 g, 50 mg/850 mg).

• Sitagliptin (as hydrochloride monohydrate): Film-coated tablet (25 mg, 50 mg).

• Linagliptin: Film-coated tablet (5 mg).

For mental illness:

• Clomipramine Hydrochloride: Film-coated tablet (25 mg).

• Chlorpromazine (as hydrochloride): Tablet (200 mg).

• Midazolam: Film-coated tablet (15 mg).

The FDA noted that the medicine “Chorionic Gonadotrophin” has been changed to “Human Chorionic Gonadotropin” with a dosage strength of 5000 IU as powder for injection. Also, it was removed from the list as it is not a medication for cancer.

The classification and inclusion of medicines in the list for VAT exemption are based on their indications, the FDA said.

Republic Act (RA) 10963 (Tax Reform for Acceleration and Inclusion Act) and RA 11534 (Corporate Recovery and Tax Incentives for Enterprises Act) state that VAT exemptions are given to medicines used in the treatment of cancer, diabetes, mental illness, and other serious diseases.

Cancer, diabetes, and hypertension are some of the leading causes of death in the Philippines, where the cost of medicines is often prohibitive for the poor.

Source: Philippine Daily Inquirer 

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