BIR expands list of VAT-exempt medicines

The Bureau of Internal Revenue (BIR) on Wednesday announced it has expanded the list of value-added tax (VAT)-exempt medicines as part of the government's efforts to make healthcare more accessible and affordable.

In a news release, the BIR said it issued Revenue Memorandum Circular (RMC) 87-2026, publishing the updated list of VAT-exempt medicines endorsed by the Food and Drug Administration (FDA) pursuant to Republic Act 10963 (TRAIN Law) and Republic Act 11534 (CREATE Act).

The updated policy brought the number of VAT-exempt medicines to 2,277, including 14 newly added medicines.

The BIR said the expanded coverage helps reduce out-of-pocket medical expenses, particularly for Filipinos undergoing long-term treatment for chronic and life-threatening illnesses.

The bureau said the updated list now covers medicines used in the treatment of:

• Cancer – 708 medicines
• Hypertension – 537 medicines
• Diabetes – 331 medicines
• Mental Illness – 300 medicines
• High Cholesterol – 172 medicines
• Kidney Disease – 152 medicines
• Tuberculosis – 77 medicines

The taxman said its issuance of the expanded VAT-exempt medicines list supports President Ferdinand "Bongbong" Marcos Jr.'s directive during his 2026 State of the Nation Address (SONA) to expand access to quality healthcare by reducing the cost of essential medicines.

"The Bureau remains steadfast in implementing tax policies that directly benefit our people. By expanding the list of VAT-exempt medicines, we are helping make essential healthcare more affordable while supporting the President's vision of a healthier and more resilient Philippines," said BIR Commissioner Charlito Martin Mendoza.

"Every peso saved through the VAT exemption helps families continue treatment, purchase essential medicines, and better manage their daily needs. By making healthcare more affordable, the government also supports better treatment outcomes and improves the quality of life of millions of Filipinos," said Mendoza.

The BIR said it is also ensuring that the tax system delivers meaningful and tangible benefits to the Filipino people, while fulfilling its mandate of generating revenues for national development. — VDV, GMA News