Some pharmacies violating VAT exemption rule

File photo
File photo

DESPITE the warning of the Department of Health (DOH), some pharmacies in Davao City have reportedly continued to collect value-added tax (VAT) on the sale of drugs and medicine for diabetes, high cholesterol and hypertension.

Under the Tax Reform for Acceleration and Inclusion Act, the sale of such medicine in various strength and form are exempted from VAT effective January 1, 2019.

Councilor Mary Joselle Villafuerte, committee on health chairperson, told SunStar Davao Monday, January 7, that she received complaints but refused to name violators.

She said she has brought up the alleged violations with DOH Assistant Secretary (Asec) for Mindanao-Visayas Abdullah Dumama Jr.

“Ang sabi niya, dapat agad-agad ipatupad ng mga pharmacies ang [VAT exemption]," Villafuerte said.

She said pharmacies should no longer wait for the Food and Drug Administration (FDA) circular as their licensed pharmacists can readily identify which medicine are for hypertension, diabetes and increased cholesterol.

Violators, however, will not be penalized as the FDA still has to finalize the guidelines for the 12-percent VAT exemption on these medicine.

“Sa ngayon, kaya hindi nila ma-compel and pharmacies to comply with such provision kasi wala pang guidelines na-provide ang FDA,” Villafuerte said.

“We will have to wait and see for now sa FDA but we will really follow up kasi sayang, this is good news,” she added.

Meanwhile, Villafuerte said the VAT exemption should also be implemented for all medicine as it is the role of the government to provide its citizens affordable medicines.

“[We] will call concerned agencies kung unsay plano nila himuon. Will also study the possibility of requesting Malacañang to lift VAT for all meds na (We will call the concerned agencies to hear their plans and will also study the possibility of requesting the Malacañang to lift VAT on the sale of all medicines),” she said.

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