The Bureau of Internal Revenue (BIR) on Monday announced a significant expansion of its Value-Added Tax (VAT) exempt medicines list, a move poised to bring much-needed financial relief to thousands of Filipinos battling chronic and life-threatening illnesses.
BIR Commissioner Romeo D. Lumagui Jr. issued Revenue Memorandum Circular No. 62-2025, which adds 10 new medicines for the treatment of cancer, diabetes, high cholesterol, hypertension, and mental illness to the list of VAT-exempt products. This latest update underscores the government’s commitment to making essential healthcare more accessible and affordable.
“The BIR has issued an additional VAT-exemption of 10 medicines for cancer, diabetes, high cholesterol, hypertension, and mental illness. Access to affordable medicines is part of BIR’s Excellent Taxpayer Service,” stated Commissioner Lumagui.
This crucial development directly benefits patients and their families by reducing the overall cost of critical medications. The VAT exemption is implemented pursuant to Republic Act No. 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law, and Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. These legislative mandates empower the BIR to ensure the VAT-exempt list remains responsive and adaptive to current public health needs, guided by the latest evaluations and recommendations from the Food and Drug Administration (FDA).
The expanded list reflects an ongoing effort by the BIR to align tax policies with public health priorities, ensuring that vital medicines are within reach for those who need them most.
