The Bureau of Internal Revenue (BIR) just made it easier for Filipinos to access essential medications. In a move that supports public health and lessens the financial burden on families, the BIR released Revenue Memorandum Circular (RMC) No. 025-2025, updating the list of value-added tax (VAT)-exempt medicines.
This updated list includes new medicines for diabetes, hypertension, high cholesterol, and even mental illness—a significant step in improving healthcare affordability in the Philippines.
✅ What’s New in the VAT-Exempt List?
BIR Commissioner Romeo Lumagui Jr. announced that the newly added VAT-exempt medicines reflect the updated product list endorsed by the Food and Drug Administration (FDA). Here’s what’s included:
🩺 For Diabetes:
- Gemigliptin – 50 mg and 500 mg film-coated tablets
- Sitagliptin – 100 mg and 1 gram extended-release film-coated tablets
These drugs are widely prescribed for managing blood sugar levels and are crucial for type 2 diabetes patients.
❤️ For Hypertension:
- Amlodipine 20 mg tablets
Amlodipine is a calcium channel blocker that helps control high blood pressure, reducing the risk of stroke and heart attacks.
🧠 For Mental Illness:
- Risperidone 4 mg orodispersible tablets
Risperidone is an antipsychotic medication commonly prescribed for schizophrenia, bipolar disorder, and irritability associated with autism.
🫀 For High Cholesterol:
- Amlodipine + Atorvastatin tablets
This combo medication helps manage both high blood pressure and cholesterol in one go, which is ideal for people at risk of heart disease.
📢 Why This Matters
Here’s the deal: VAT on medicines used to add 12% to the cost of essential drugs. For chronic conditions like diabetes, heart disease, or mental illness, that’s not just an inconvenience—it’s a barrier to treatment.
By removing VAT, the government essentially lowers the price of these medications, making them more affordable and accessible to more Filipinos.
🧾 A Quick Recap on the BIR’s VAT-Free Drug Policy
This update isn’t the first. In December 2024, the BIR also added 16 medicines to the VAT-exempt list, mostly for cancer, diabetes, and mental health.
The policy is rooted in the TRAIN Law (Republic Act No. 10963), which mandates the exemption of certain essential medicines from VAT. It aims to provide financial relief to Filipinos dealing with long-term and costly medical treatments.
