BIR expands VAT-exempt medicines list

The Bureau of Internal Revenue has expanded the list of value-added tax-exempt medicines to 2,263 drugs, a move the government says is meant to ease the cost of treatment for Filipinos living with chronic and life-threatening illnesses.

The update was formalized through Revenue Memorandum Circular No. 27-2026, which the BIR issued on April 8, 2026.

The circular published the Food and Drug Administration-endorsed full list of VAT-exempt medicines covered by 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.

Based on the updated FDA endorsement, the VAT-exempt list now covers 702 medicines for cancer, 535 for hypertension, 327 for diabetes, 300 for mental illness, 171 for high cholesterol, 152 for kidney disease, and 76 for tuberculosis.

The expanded list reflects the government’s continuing use of tax policy as a tool to make treatment more affordable, especially for patients who require maintenance medicines or long-term care.

The BIR said the issuance is aligned with President Ferdinand R. Marcos Jr.’s directive to make health care more accessible and affordable for Filipinos.

It added that the Department of Finance, under Finance Secretary Frederick D. Go, is backing the implementation of measures intended to bring down the cost of essential medicines.

BIR Commissioner Charlito Martin R. Mendoza said, “This issuance forms part of the government’s continuing efforts to help ease the cost of essential medicines, especially for Filipinos managing chronic and critical illnesses.”

The latest circular also makes clear that the updated list replaces earlier revenue memorandum circulars on VAT-exempt medicines.

Under RMC No. 27-2026, the list will remain in force until the FDA endorses a new set of updates.