BIR exempts 20 medicines from Value-Added Tax

By Francis Allan L. Angelo

Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui, Jr., issued on March 5, 2024 Revenue Memorandum Circular No. 34-2024 which exempts certain medicines for cancer, hypertension, and mental illness from the Value-Added Tax (VAT).

The exemption is reflected in the updated list from the Food and Drug Administration of the Department of Health under Republic Act No. 10963 and 11534.

“The VAT exemption of these medicines for cancer, hypertension, and mental illness is a step towards a healthier country. The BIR shares the noble intention behind more affordable medicines for the public,” Lumagui said.

The update enhances the list of VAT-exempt drugs and medicines under Section 109(AA) of the National Internal Revenue Code of 1997, revised by the TRAIN Law and the CREATE Act.

As part of Lumagui’s commitment to Excellent Taxpayer Service in 2024, the BIR aims to provide real-time updates on taxation matters, such as the VAT exemption for certain medicines, reflecting a shift from a focus on collection targets to a more service-oriented approach.

“We offer more affordable medicine for everyone as a gift from the new BIR to the new Philippines. Our countrymen can count on the BIR’s assistance to reduce their expenses for necessary medicines. The BIR continues to support our less fortunate compatriots,” Lumagui said in a press statement.

I. Inclusion

A. Medicines for Cancer

 

Generic Name	Dosage Strength	Dosage Form
Sonidegib (as phosphate)	200 mg	Capsule
Pemetrexed (as disodium heptahydrate)	100 mg	Lyophilized Powder for IV Infusion
Asciminib (as hydrochloride)	20 mg	Film-Coated Tablet
Asciminib (as hydrochloride)	40 mg	Film-Coated Tablet
Palbociclib	75 mg	Film-Coated Tablet
Palbociclib	100 mg	Film-Coated Tablet
Palbociclib	125 mg	Film-Coated Tablet
Pemetrexed (as disodium hemipentahydrate)	100 mg	Powder for Concentrate for Solution for Infusion (I.V.)
Pemetrexed (as disodium hemipentahydrate)	10 mg/mL (500 mg/50mL)	Solution for Injection (IV Infusion)
Cabazitaxel	60 mg/1.5 mL	Concentrate for Solution for Injection (I.V.)
Entrectinib	100 mg	Capsule
Entrectinib	200 mg	Capsule

 

B. Medicines for Hypertension

 

Generic Name	Dosage Strength	Dosage Form
Losartan Potassium + Amlodipine (as besilate)	100 mg/10 mg	Film-Coated Tablet
Losartan Potassium + Amlodipine (as besilate)	100 mg/5 mg	Film-Coated Tablet
Irbesartan + Amlodipine (as Besilate)	300 mg/5 mg	Film-Coated Tablet
Irbesartan + Amlodipine (as Besilate)	300 mg/10 mg	Film-Coated Tablet

 

C. Medicines for Mental Illness

Generic Name	Dosage Strength	Dosage Form
Cariprazine (as hydrochloride)	1.5 mg	Capsule
Cariprazine (as hydrochloride)	3 mg	Capsule
Cariprazine (as hydrochloride)	4.5 mg	Capsule
Cariprazine (as hydrochloride)	6 mg	Capsule