Finance Secretary Ralph Recto ordered the Bureau of Internal Revenue (BIR) to accelerate the implementation of value-added tax (VAT) exemption on an expanded list of critical medicines.
The exemption covers drugs for cancer, diabetes, dialysis, hypertension, high cholesterol and mental illnesses to make healthcare more affordable and accessible for Filipinos. The directive aligns with President Ferdinand Marcos Jr.’s goal of advancing universal healthcare.
Recto, a long-time health advocate, championed landmark laws during his time in the Senate that laid the foundation for VAT-free medicines.
He authored the Tax Reform for Acceleration and Inclusion Act (Republic Act 10963) and co-authored the Corporate Recovery and Tax Incentives for Enterprises Act (RA 11534), both of which expanded the VAT-free list and significantly reduced out-of-pocket costs for Filipino patients.
“This is a great relief for Filipinos, especially those who are unfortunate enough to be unable to afford expensive medicines,” Recto said.
“We are not only helping to ease the cost—we are also giving them hope to recover and complete their treatment. We will ensure that health is affordable for every Filipino,” he said.
The BIR on June 4, 2025 published the list of new medicines exempt from the 12% VAT, based on an expanded list released by the Food and Drug Authority (FDA).
Among the cancer medications now exempt is Tegafur+Gimeracil+Oteracil Potassium. For individuals with diabetes, Metformin Hydrochloride+Teneligliptin is now VAT-exempt. Patients with high cholesterol can now purchase Atorvastatin + Fenofibrate without VAT, while Metoprolol tartrate + Ivabradine is also exempt for hypertension. Lamotrigine, used to treat mental illnesses, is now tax-exempt.
The expansion of the VAT-exempt medicine list underscores the government’s ongoing efforts to ease healthcare-related financial burdens for its citizens and foster a healthier, more productive nation.
