BIR Adds 9 New VAT-Free Medicines for Illnesses

The Bureau of Internal Revenue, led by Commissioner Romeo D. Lumagui Jr., issued Revenue Memorandum Circular No. 59-2025 dated June 11 to announce an updated list of medicines exempt from value-added tax.

The Food and Drug Administration of the Department of Health endorsed the list.

The update includes nine additional medicines used to treat cancer, diabetes, hypertension, kidney disease and tuberculosis.

(Refer to the tables below for details.)

The VAT exemption is in accordance with Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Law, and Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act.

The exemption takes effect upon the issuance and publication of the corresponding FDA advisory.

“The BIR stands in full support of the DOH and FDA in advancing health equity,” Lumagui said.

“The tax system should never be a barrier to medical treatment.

No Filipino should have to choose between their health and their basic needs.

This VAT exemption is a concrete step toward ensuring that life-saving and life-sustaining medicines are within reach for all.”