The Bureau of Internal Revenue (BIR) has released an updated list of 2,263 medicines exempted from value-added tax (VAT), covering treatments for chronic and life-threatening illnesses.
Officials said the move is part of efforts to ease healthcare costs for Filipinos.
The expanded list was issued under Revenue Memorandum Circular (RMC) No. 27-2026 on April 8, 2026, consolidating and replacing earlier VAT-exempt drug listings.
It was based on endorsements from the Food and Drug Administration (FDA) under the Department of Health (DOH), and anchored on the TRAIN Law (RA 10963) and the CREATE Act (RA 11534).
According to the circular, the VAT exemption applies to medicines across seven major disease groups:
- 702 for cancer
- 535 for hypertension
- 327 for diabetes
- 300 for mental illness
- 171 for high cholesterol
- 152 for kidney disease
- 76 for tuberculosis
BIR Commissioner Charlito Martin Mendoza said the broader coverage is intended to strengthen access to long-term therapies, which often require sustained spending and can place heavy financial burdens on patients and families.
“This issuance forms part of the government’s continuing efforts to help ease the cost of essential medicines, especially for Filipinos managing chronic and critical illnesses,” Mendoza said.
The Department of Finance backed the measure, describing it as part of the government’s wider agenda to make healthcare more affordable.
Under the circular, the updated list supersedes previous issuances and will remain effective until the FDA issues a new endorsement, which will serve as the basis for future updates.
With the expansion, the government expects to provide broader tax relief for essential medicines, using VAT exemptions as a policy tool to reduce out-of-pocket healthcare costs—particularly for patients undergoing long-term treatment for chronic and high-cost conditions.