BIR adds 10 new VAT-exempt medicines for critical conditions

The Bureau of Internal Revenue (BIR) has expanded the list of value-added tax (VAT)-exempt medicines by adding ten more drugs for critical conditions such as cancer, high cholesterol, hypertension, and mental illness.

This move, spearheaded by BIR Commissioner Romeo Lumagui Jr. through Revenue Memorandum Circular No. 62-2025, aims to make essential medications more accessible by lowering treatment expenses for patients.

The newly exempted medicines include treatments for cancer, diabetes, high cholesterol, hypertension, and mental illness.

Specifically, three of the ten added drugs are for the treatment of mental illness, while two kinds of medicines each are for cancer, diabetes, and hypertension, and one is for high cholesterol.

These exemptions are implemented in accordance with Republic Act No. 10963 (TRAIN Law) and Republic Act No. 11534 (CREATE Act), with endorsements from the Food and Drug Administration of the Department of Health.

The VAT exemptions apply to the sale by manufacturers, distributors, wholesalers, and retailers of medicines.