Meds for diabetes, hypertension, high cholesterol VAT-free starting January 1, 2019

Medicines for diabetes, high cholesterol, and hypertension will be cheaper starting January 1, 2019 when a provision in the Tax Reform for Acceleration and Inclusion (TRAIN) exempting such drugs from the value added tax (VAT)takes effect.

In a Facebook post, the Department of Finance announced that starting next year, VAT will no longer be imposed on medicines prescribed for diabetes, high cholesterol, and hypertension.

The Section 109 (AA) of the Tax Reform for Acceleration and Inclusion (TRAIN) law identifies the drugs and medicines exempted from VAT.

The Bureau of Internal Revenue issued the Revenue Regulation No. 25-2018 dated December 21, which laid out the rules for the VAT-exempt status of medicines for diabetes, high cholesterol, and hypertension.

“The exemption from VAT provided herein shall apply to the sale by manufacturers, distributors, wholesalers, and retailers of drugs and medicines prescribed for the treatment and/or prevention of diabetes, high cholesterol and hypertension starting January 1, 2019,” the BIR issuance said. —NB, GMA News