BACOLOD

Labor group lauds VAT exemption for expensive medicines

GENERAL Alliance of Workers Association (Gawa) has lauded a recently signed law which seeks to exempt value added tax (VAT) for expensive medicines.

Wennie Sancho, secretary general of Gawa, said the new law will certainly help the Filipino people, especially those who are taking maintenance medicines.

President Rodrigo Duterte has recently signed into law Republic Act 11467 - the same law which imposes higher taxes for liquor and e-cigarettes - is also carrying a provision which exempts VAT medicines for grave illnesses such as cancer, tuberculosis, kidney issues, mental illness, and other.

Sancho said the sick will be able to buy their other needs thanks to the money saved due to the exemption.

He also added senior citizens will be able to benefit from the new law, pointing out sometimes that the pension they receive are not enough.

Under the new law, the VAT exemption for medicines will take effect on January 1, 2023.

The VAT exemption also includes medicines for diabetes, high cholesterol, and hypertension which started this year, although the medicines have already been exempted from VAT collection since 2019 following an order issued by the Food and Drug Administration and the Bureau of Internal Revenue. (TDE)


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