MANUFACTURERS will benefit from the exemptions on value-added tax (VAT) for certain medicines, the Food and Drug Administration (FDA) said.
In an interview on PTV’s Bagong Pilipinas Ngayon on Friday, November 29, FDA spokesperson Atty. Pamela Sevilla clarified that exemptions are imposed on manufacturers as aligned with the National Internal Revenue Code.
Sevilla explained that when buying VAT-exempt medicines, prices should be significantly lower as manufacturers are now exempt from VAT, but consumers will still have to pay VAT on their final bill.
“Kung VAT-exempt bakit hindi nababawasan ‘yong 12 percent VAT ‘pag nabibili? Itong VAT-exempt po na ito, beneficial sa businesses o enterprise na nagma-manufacture ng gamot. ‘Pag binibli po natin, kung dati nabibili natin before at P100 price, ‘pag binili po ngayon dapat nasa P90 o P80 price,” Sevilla said.
FDA recently added four cancer medications, nine diabetes medications, and three medications for mental illness to its list of VAT-exempt medicines.
While the law on exempting certain medicines from VAT was to allow businesses to recover from the COVID-19 pandemic, FDA said the initiative benefits both enterprises and consumers who depend on these medicines.
The list of VAT-exempt medicines can be viewed on the FDA website. (ABS-CBN News)
