
THE Bureau of Internal Revenue (BIR) urged the public to report pharmacies that continue to impose value-added tax (VAT) on medicines that are already exempted, following the issuance of Revenue Memorandum Circulars (RMC) Nos. 59-2025 and 62-2025, which expanded the list of VAT-exempt medicines.
On Tuesday, July 8, BIR Commissioner Romeo Lumagui Jr. said the agency has been receiving numerous reports from consumers that some pharmacies are still imposing VAT on exempted medicines.
“Kung maka-encounter kayo ng ganito, maaaring i-report ng publiko ang mga hindi sumusunod na botika sa aming ahensya, sa BIR. Pwede po tayong i-contact sa contact_us@bir.gov.ph,” Lumagui said.
The BIR chief added that the public may also file complaints with the Food and Drug Administration (FDA) and the Department of Trade and Industry (DTI).
Reports must include the name of the establishment, its address, and details of the receipt to ensure prompt action.
Lumagui emphasized that the exemptions are already in effect as the BIR has already circulated the relevant issuances.
The BIR issued RMC No. 59-2025 on June 11, 2025, which disseminates the latest list of VAT-exempt medicines following recommendations from the FDA.
These medicines, he stressed, are essential maintenance and life-saving drugs, and their inclusion in the list of VAT-exempt medicines is part of government efforts to make essential medical treatment affordable to all.
He pointed out that based on the two new issuances, 19 drugs used to treat cancer, diabetes, hypertension, high cholesterol, kidney disease, tuberculosis, and mental illness are added to the list of VAT-exempt medicines.
“These are maintenance and life-saving medicines that are now exempted from VAT. This is a concrete step to ease the financial burden of patients,” Lumagui said.
The newly VAT-exempt medicines under RMC Nos. 59-2025 and 62-2025 are:
* Medicines for cancer – Bortezomib, Lenvatinib (as mesylate), Lenalidomide, Paclitaxel, and Tegafur + Gimeracil + Oteracil Potassium
* Medicines for diabetes – Saxagliptin (as hydrochloride) + Dapagliflozin (as propanediol monohydrate) and Metformin Hydrochloride + Teneligliptin (as hydrobromide hydrate)
* Medicines for hypertension – Losartan potassium + Rosuvastatin (as calcium) + Amlodipine (as camsilate) and Metoprolol tartrate + Ivabradine (as hydrochloride)
* Medicine for high cholesterol – Atorvastatin (as calcium) + Fenofibrate
* Medicine for kidney disease – Peritoneal Dialysis Solution with 2.5 percent Dextrose
* Medicine for tuberculosis – Rifampicin + Isoniazid + Pyrazinamide
* Medicine for mental illness – Lamotrigine (including chewable/dispersible, orally disintegrating, and regular tablet forms)
Lumagui assured the public that the BIR is closely monitoring pharmaceutical companies and retailers, in coordination with the FDA, DOH (Department of Health), and DTI to ensure the benefits of the exemption are passed on to consumers.
He also assured that the BIR continues to coordinate with the FDA and the DOH to further expand the list of VAT-exempt medicines.
Under Section 12 of Republic Act (RA) 11534 or the CREATE Act, and RA 10963 or the TRAIN Law, VAT exemptions are granted for select health products. These become effective upon official issuance of the FDA advisory endorsing the updated list of exempted medicines. (PNA)