More medicines vs cancer, diabetes now VAT-exempt
The Bureau of Internal Revenue (BIR) has approved an updated set of medicines that are exempted from the value-added tax (VAT) following the Food and Drug Administration’s (FDA) endorsement of additional drugs that will benefit patients battling serious and chronic illnesses.
Under Revenue Memorandum Circular 108-2025, more than 2,000 medicines used for cancer, diabetes, high cholesterol, hypertension, kidney disease, mental illness and tuberculosis are now exempt from the 12-percent tax.
New additions
“Previous revenue memorandum circulars issued are hereby superseded until new updates are endorsed by the FDA,” the BIR memorandum read.
The FDA, through Advisory No. 2025-1200, endorsed 13 additional drugs for exemption on Oct. 16. Of these, five were added for cancer treatment, including Irinotecan Hydrochloride Trihydrate, Irinotecan, Nilotinib, and two different dosages of Capivasertib.
Diabetes drugs increased by eight, seven of which are different dosages of Semaglutide, and one combination of Gemigliptin and Dapagliflozin.
The updated list brings the total number of VAT-exempt medicines to 2,242.
Cancer patients can now access 675 medicines that are VAT-free while those managing diabetes have 323 drugs available. Medication for high cholesterol now total 173 and 542 for those diagnosed with hypertension.
