DOH working with DOF to implement VAT-free meds

The Department of Health (DOH) is coordinating with the Department of Finance (DOF) for the implementation of the exemption of selected medicines from value-added tax (VAT), an official said Monday.

“We are working with the Department of Finance to implement the VAT-exemption of medicines under the TRAIN law, specifically medicines for hypertension, diabetes, and high cholesterol,” Health Undersecretary Charade Mercado-Grande said in a media forum.

Starting January 2019, medicines for hypertension, diabetes, and high cholesterol became VAT-free under the Tax Reform for Acceleration and Inclusion (TRAIN).

Meanwhile, under the Corporate Recovery and Tax Incentives for Enterprises (CREATE), Grande said medicines for the management of cancer, mental illnesses, tuberculosis, kidney diseases, and COVID-19 are also exempted from VAT.

The DOF previously said medicines for mental health, cancer, tuberculosis, and kidney diseases will also be VAT-free starting January 2023.

Signed into law in December 2017, the TRAIN expanded the VAT base and reduced personal income taxes (PIT) starting January 2018.—AOL, GMA News