BIR: 14 more drugs exempt from VAT

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August 6, 2026 | 12:00am

MANILA, Philippines — To ease treatment costs and improve access to affordable health care, the government has expanded the list of medicines exempt from value-added tax (VAT) to 2,277 drugs.

The Bureau of Internal Revenue (BIR) published the updated roster of VAT-free medicines under the Tax Reform for Acceleration and Inclusion Law and the CREATE Act, following endorsement by the Food and Drug Administration.

The updated list includes 14 medicines aimed at cutting out-of-pocket medical expenses, particularly for those undergoing long-term treatment for chronic and life-threatening illnesses.

Broken down, cancer medicines topped the list at 708, followed by 537 for hypertension and 331 for diabetes.

The BIR circular also identified 300 medicines for mental illness, 172 for high cholesterol, 152 for kidney disease and 77 for tuberculosis.

The Philippine Statistics Authority reported that ischemic heart disease, neoplasms and cerebrovascular diseases, pneumonia as well as diabetes mellitus were the top causes of death from January to September 2025.

“The bureau remains steadfast in implementing tax policies that directly benefit our people. By expanding the list of VAT-exempt medicines, we are helping make essential health care more affordable,” BIR Commissioner Charlito Martin Mendoza said.

The BIR said every peso saved through the VAT exemption helps families continue treatment, purchase essential medicines and better manage their everyday needs.