VAT-free medicines expanded to 2,263 drugs, easing healthcare costs for Filipinos on long-term treatment

The updated list covers cancer, diabetes, hypertension, mental illness, and other conditions, offering broader relief on out-of-pocket medicine expenses.

Thousands of medicines are now VAT-free after the government expanded its list of value-added tax-exempt drugs to 2,263 items, offering relief on healthcare spending for Filipinos managing long-term and critical illnesses.

Where the relief hits hardest

The expanded list issued by the Bureau of Internal Revenue covers treatments for cancer, hypertension, diabetes, mental illness, high cholesterol, kidney disease, and tuberculosis. Of the total, 702 medicines are for cancer, 535 for hypertension, 327 for diabetes, 300 for mental illness, 171 for high cholesterol, 152 for kidney disease, and 76 for tuberculosis.

Issued through Revenue Memorandum Circular No. 27-2026, the updated list reflects endorsements from the Food and Drug Administration (FDA) under Republic Act No. 10963 (TRAIN Law) and Republic Act No. 11534 (CREATE Act). It replaces earlier issuances and will remain in effect until further updates are released.

By widening the scope of VAT-exempt drugs, the policy is expected to ease recurring prescription expenses, particularly for patients who rely on daily maintenance medication. For many households, especially those without comprehensive insurance coverage, the exemption can translate into steady monthly savings that accumulate over time.

The update also signals a continued push to use tax policy as a tool for making essential healthcare more affordable, especially as medicine prices remain a major component of out-of-pocket medical costs in the Philippines.

What consumers need to know

The list is based on the latest endorsements from the FDA. While the BIR has issued the memorandum, the transition at the drugstore level may take a few days as retailers update their point-of-sale (POS) systems.

Key Reminders for Patients:

1. 1. Check the List: Ensure your specific brand and generic name are included in RMC No. 27-2026.
   2. Review Your Receipt: The VAT (12%) should no longer appear on the line items for these specific drugs.
   3. Combine with Senior Discounts: This VAT exemption is applied in addition to existing senior citizen and PWD discounts, providing a compounded relief for eligible individuals.

 

 

2,263 drugs are now 12% cheaper! The BIR expands its VAT-free list to include more treatments for cancer, diabetes, and mental illness. Find out how much you can save on your next prescription.

 

 

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