Over 2,200 drugs VAT-exempt – BIR

December 11, 2025 | 12:00am

MANILA, Philippines — The government has listed more than 2,200 medicines as exempted from value-added tax (VAT) this year, with cancer, hypertension and diabetes accounting for the highest number of exempt drugs, according to a newly released memorandum.

In the revenue memorandum of the Bureau of Internal Revenue (BIR), cancer patients benefit from the widest coverage, with 675 medicines included in the VAT exemption program.

Hypertension drugs followed with 542 medications exempted from VAT, while 323 diabetes medicines are also included.

The BIR said the updated list now represents the current VAT-exempt medicines for the illnesses mentioned and replaces all previously issued revenue memorandum circulars on the matter until the FDA releases new updates.

The Philippine Statistics Authority reported that ischemic heart disease, neoplasms and cerebrovascular diseases emerged as the leading causes of death in the Philippines from January to April.

Data also show that 300 medicines for mental health conditions are included.

In September, the Department of Health unveiled a new magnetic resonance imaging facility at the National Center for Mental Health (NCMH), which the agency said could accommodate more than 200 patients.

From January to September, the NCMH received 21,815 calls from individuals in distress, of which 7,189 were related to suicide related calls.

The VAT-exempt list also covers 173 medicines for high cholesterol and 154 treatments for kidney disease, expanding the range of affordable essential medications for patients.

The Philippine Health Insurance Corp. recently launched a benefits package in June for post-kidney transplantation services, which covers adults and children with stage five chronic kidney disease.

Meanwhile, 75 drugs are exempted from VAT for illness related to tuberculosis. The World Health Organization reported earlier that eight countries accounted for two-thirds of global tuberculosis cases last year, with the Philippines ranking third in the number of reported cases.

In total, 2,242 drugs are VAT-exempt per the BIR.