By Brian Campued
The Bureau of Internal Revenue (BIR) has increased the number of medicines exempted from value-added tax (VAT) in support of President Ferdinand R. Marcos Jr.’s directive in his 5th State of the Nation Address (SONA) to reduce the cost of essential medicines.
According to Revenue Memorandum Circular (RMC) No. 87-2026, BIR updated its list of VAT-exempt medicines endorsed by the Food and Drug Administration (FDA) pursuant to Republic Act No. 10963 (TRAIN Law) and Republic Act No. 11534 (CREATE Act).
The BIR said that of the total 2,277 VAT-exempt medicines, 708 are for cancer, 537 for hypertension, 331 for diabetes, 300 for mental illness, 172 for high cholesterol, 152 for kidney disease, and 77 for tuberculosis.
In a news release Wednesday, BIR Commissioner Charlito Martin Mendoza said the expanded coverage helps reduce out-of-pocket medical expenses, particularly for Filipinos undergoing long-term treatment for chronic and life-threatening illnesses.
“The Bureau remains steadfast in implementing tax policies that directly benefit our people. By expanding the list of VAT-exempt medicines, we are helping make essential healthcare more affordable while supporting the President’s vision of a healthier and more resilient Philippines,” Mendoza said.
In his 5th SONA, President Marcos Jr. underscored the administration’s commitment to expanding Filipinos’ access to quality healthcare and help families continue treatment, purchase essential medicines, and better manage their daily medical needs.
“Sa buwis na ito na ating tinanggal, ang side effect diyan ay mas mababang presyo nito sa botika,” he said. “Ngunit kung pag-iwas sa sakit ang ating tunay na pakay, kulang pa ito. Kailangang mas maaga ang pagbabantay. Kaya pinapalawak pa natin ang programang ito.”
The updated full list of VAT-exempt medicines can be accessed through this link: https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%2087-2026%20Annex%20A%20(6).pdf
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