BIR exempted more drugs from VAT
By J.Lo
Updated list of value-added tax (VAT)-exempt medicines for various diseases such as cancer and hypertension has been released by Bureau of Internal Revenue (BIR).
In its latest revenue memorandum circular, BIR approved list of 12 percent VAT-exempt products under Tax Reform for Acceleration and Inclusion Law and Corporate Recovery and Tax Incentives for Enterprises Act.
This comes after Food and Drug Administration of Department of Health endorsed updated list.
Circular covered inclusion of certain medicines for cancer, hypertension and mental illness.
Total of 20 drugs were added to the list, 12 of which are for treatment of cancer.
Some four kinds of medicines are meant for hypertension. BIR also approved four more drugs for mental illnesses.
Dosage of medicines is in form of capsules, lyophilized powder for intravenous infusion, tablets, powder concentrate and solution for injection.
Just a little over a month ago, BIR included 16 VAT-exempt medicines for cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness and tuberculosis.
It was in January 2019 when government started implementing VAT exemption for prescription drugs used to treat cardiovascular diseases and diabetes.
VAT exemptions apply to sale by manufacturers, distributors, wholesalers and retailers of the medicines.
VAT exemption aims to make certain medicines more affordable to consumers.
Latest data from Philippine Statistics Authority showed top three causes of death in the country from January to September last year were heart disease, cancer and cerebrovascular disease, accounting for combined 40 percent of mortality.
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