By Brian Campued
The Food and Drug Administration (FDA) has expanded the list of medicines exempted from value-added tax (VAT) for treatment of certain serious health conditions, such as cancer, diabetes, and mental illness.
As mandated under the Republic Act (RA) No. 10963 (Tax Reform for Acceleration and Inclusion Act) and RA 11534 (Corporate Recovery and Tax Incentives for Enterprises Act), the VAT exemptions are given to select medicines used in the treatment of serious illnesses.
According to the FDA Advisory No. 2024-1618, the following medicines are now exempted from VAT:
For cancer
- Degarelix
- Tremelimumab
For diabetes
- Sitagliptin
- Linagliptin
For mental illness:
- Clomipramine hydrochloride
- Chlorpromazine (as hydrochloride)
- Midazolam
The FDA also clarified that the medicine “Chorionic Gonadotrophin” has been corrected to “Human Chorionic Gonadotropin” with a dosage strength of 5000 IU as powder for injection.
“Gayunpaman, tinanggal ito mula sa VAT-exempt list dahil hindi ito itinuturing na panglunas sa kanser,” the regulating body stated.
The FDA, likewise, assured that VAT exemptions are only issued for qualified products and are based on their indications.
“Patuloy na sinusuportahan ng FDA ang abot-kayang healthcare para sa lahat ng Pilipino. Sa pamamagitan ng pagpapalawig at pag-aayos ng listahan ng VAT-exempt na gamot, layunin ng FDA na mabawasan ang gastusin sa gamutan at mapadali ang access sa dekalidad na pangangalaga, lalo na para sa mga nangangailangan ng life-saving medications,” it said.
—iro
