The Bureau of Internal Revenue (BIR) has updated its list of VAT-exempt drugs for conditions such as cancer, hypertension, and diabetes.
The BIR approved the list of 12 percent VAT-exempt products under the Tax Reform for Acceleration and Inclusion Law in its most recent revenue memorandum circular.
This comes after the Department of Health’s Food and Drug Administration (DOH) approved the new list.
The circular addressed the inclusion of certain cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness, and tuberculosis medications.
A total of 59 medications were added to the list, with nearly half, or 25, being used to treat cancer. There are 11 different types of drugs for renal illness, ten for diabetes, and six for hypertension.
The BIR also approved four more medications for mental diseases, two for high cholesterol treatment, and one for tuberculosis.
The drugs are available in the following dosage forms: concentrate for solution for infusion, tablets, powder for injection, capsules, granules for oral solution, and dialysis solution.
Following the DOH’s advice, the BIR withdrew Ixekizumab injection solution off the list.
The medicine was approved as an interleukin inhibitor suggested for the treatment of moderate to severe plaque psoriasis in people who are candidates for systemic therapy after the certificate of product registration and package insert were examined.
This indicates that the medication is no longer categorized as a cancer treatment.
The government began implementing the VAT exemption for prescription medications used to treat diabetes and cardiovascular disorders in January 2019.
The VAT exemption attempts to lower the cost of some medications for customers.
59 more medicines exempted from VAT
The top three causes of death in the nation last year, accounting for a combined 40% of mortality, were heart disease, cancer, and cerebrovascular illness, according to data from the Philippine Statistics Authority.
As he pushes for the deletion of several exemptions, Finance Secretary Benjamin Diokno earlier this week stated that the government is reviewing the country’s VAT system’s implementation.
Carlos Dominguez, a former head of finance, earlier urged the Marcos administration to limit the scope of VAT exemptions to just a select few purchases, such as those for medical, food, and agricultural products.
The government can generate P142.5 billion annually by doing away with the exemptions.
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