2,263 medicines now exempted from VAT

HEALTH CARE. A pharmacist checks the stocks at the Pambansang Botika at Bakuna para sa Mamamayan (National Pharmacy and Vaccination for Citizens) which was launched at the Social Security System head office in Diliman, Quezon City on Monday (Jan. 26, 2026). The pharmacy aims to provide affordable medicines to the public and will be expanded nationwide, including in remote areas. (PNA photo by Joan Bondoc)

By Anna Leah Gonzales | Philippine News Agency

More than 2,000 medicines are now exempted from value-added tax (VAT), the Bureau of Internal Revenue (BIR) said.

The BIR posted the full list of 2,263 VAT-exempt drugs on Monday, as endorsed by the Food and Drug Administration and covered by Revenue Memorandum Circular (RMC) No. 27-2026 issued April 8.

RMC No. 27-2026 further provides that the updated list supersedes previous circulars issued on the matter and shall remain in effect until FDA endorses new updates.

The exemption is provided under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law and Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The BIR said that of the total number of VAT-exempt medicines, 702 are for cancer, 535 for hypertension, 327 for diabetes, 300 for mental illness, 171 for high cholesterol, 152 for kidney disease, and 76 for tuberculosis.

The exemption is in line with President Ferdinand R. Marcos Jr.’s directive to make healthcare more accessible and affordable for Filipinos.

BIR Commissioner Charlito Mendoza said in a statement, “This issuance forms part of the government’s continuing efforts to help ease the cost of essential medicines, especially for Filipinos managing chronic and critical illnesses.” (PNA)

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