FINANCE Secretary Ralph G. Recto has ordered the Bureau of Internal Revenue (BIR) to swiftly implement the value-added tax (VAT) exemption on the expanded list of medicines for cancer, diabetes, dialysis, hypertension, high cholesterol and mental illnesses to make healthcare affordable and accessible to Filipinos.
This is in line with President Ferdinand R. Marcos, Jr.’s directive to advance universal healthcare for all.
A long-time health advocate, Secretary Recto championed landmark laws during his time in the Senate that laid the foundation for VAT-free medicines.
He was the author of the Tax Reform for Acceleration and Inclusion Act (R.A. 10963) and co-author of the Corporate Recovery and Tax Incentives for Enterprises Act (R.A. 11534)—laws that led to the expansion of the VAT-free list, significantly reducing out-of-pocket costs for Filipino patients.
On June 4, 2025, the BIR published the list of new medicines that are exempt from 12 percent VAT, based on the expanded list released by the Food and Drug Authority (FDA).
Cancer medications that are now exempt include Tegafur+Gimeracil+Oteracil Potassium.
For individuals with diabetes, Metformin Hydrochloride+Teneligliptin is now VAT-exempt.
Patients with high cholesterol can now avail of Atorvastatin + Fenobribrate without VAT, as well as Metoprolol tartrate + Ivabradine with hypertension.
Meanwhile, Lamotrigine, used to treat mental illnesses, is also exempt from tax.
This expansion of the VAT-exempt medicine list is a testament to the government’s ongoing efforts to alleviate the healthcare-related financial burdens of its citizens and to foster a healthier and more productive nation. / PR