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More Medicines Now VAT-Exempt, Says FDA

by DitoSaPilipinas.com on Jun 13, 2025 | 12:06 PM
Edited: Jun 17, 2025 | 12:06 AM

Filipinos managing long-term and costly illnesses can expect some relief as the Food and Drug Administration (FDA) has endorsed 10 additional medicines to be exempted from value-added tax (VAT).

In an advisory released on Wednesday, the FDA said the newly added medicines address major health concerns such as cancer, diabetes, hypertension, high cholesterol, and mental health disorders—conditions that often require expensive, lifelong treatment.

Removing the 12% VAT on these medicines is seen as a step toward making essential healthcare more affordable and accessible to Filipinos.

Medicines for Cancer, Diabetes, Mental Health

Among the newly endorsed VAT-exempt medicines are:

  • * For cancer: Tegafur + Gimeracil + Oteracil Potassium in two capsule forms
  • * For diabetes: Metformin Hydrochloride + Teneligliptin in two extended-release tablet forms
  • * For high cholesterol: Atorvastatin + Fenofibrate, film-coated tablet
  • * For hypertension: Metoprolol tartrate + Ivabradine in two tablet forms
  • * For mental health: Lamotrigine in three forms, including dispersible and chewable tablets

“These medicines are used to treat conditions that significantly affect public health. Making them VAT-free will ease the financial burden on patients,” the FDA said.

Part of Government Push for Affordable Healthcare

This move supports President Ferdinand R. Marcos Jr.’s push to lower the cost of medicines and improve healthcare access nationwide. It also complies with Section 12 of Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which allows VAT exemption on select health products.

The FDA also called on the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), and Department of Trade and Industry (DTI) to ensure that these VAT exemptions are properly and promptly implemented.

With this latest move, the government hopes to ease healthcare costs for more Filipinos, especially those battling chronic illnesses requiring continuous medication.


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