FDA adds 10 more drugs to VAT-free medications
The Food and Drug Administration (FDA) has added 10 drug products to its list of essential medicines exempted from the 12-percent value-added tax (VAT), making them more affordable to Filipinos.
Under FDA Advisory No. 2025-0510, the regulatory body endorsed to the Bureau of Internal Revenue (BIR) to make two medicines for cancer, two for diabetes, one for high cholesterol, two for hypertension and three medicines for mental illness exempted from VAT.
The advisory took effect on June 4, and is the first set of VAT-exempt medicines under the new administration of FDA Director General Paolo Teston.
Added to the growing list of VAT-exempt drugs are Tegafur + Gimeracil + Oteracil Potassium capsule (in 20 mg/5.8 mg/19.6 mg, and 25 mg/7.25 mg/24.5 mg dosage). The combination medication is used for the treatment of different types of cancer, including head and neck cancer, colorectal cancer, as well as nonsmall-cell lung, breast, pancreatic and biliary tract cancers.
Blood sugar control
The FDA also recommended Metformin Hydrochloride + Teneligliptin tablet (as hydrobromide hydrate) (in 1 g/20 mg, and 500 mg/20 mg), used to control blood sugar levels in adults with type 2 diabetes, to be free from VAT.
Also exempted from VAT are Atorvastatin (as calcium) + Fenofibrate tablet (20 mg/160 mg), which is used in the treatment of high cholesterol and prevention of heart diseases and blood vessel blockage; and Metoprolol tartrate + Ivabradine (as hydrochloride) tablet (in 50 mg/5 mg; and 50 mg/5 mg), used for treatment of high blood pressure, chest pain or pressure, and to decrease the risk of death from a heart attack.
The regulator also removed the VAT for Lamotrigine (5 mg chewable tablet; 25 mg oral dispersible tablet; and 25 mg tablet), which is used to treat epilepsy and stabilize mood in bipolar disorder.
The FDA, however, removed from its list of VAT-exempt medicines for cancer Baricitinib tablet (2 mg; and 4 mg).
The listed medicines were in addition to the more than 2,000 drugs indicated for the prevention and management of diabetes, hypertension, cancer, high cholesterol, mental illnesses, tuberculosis and kidney diseases, which were exempted from VAT under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion or Train Act, and RA 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act.
