FDA tightens monitoring of VAT-exempt medicines, fake drugs

The Food and Drug Administration (FDA) is strengthening its monitoring of value-added tax (VAT) exempt medicines to ensure lower prices for consumers while stepping up enforcement against counterfeit and unregistered drugs.

FDA spokesperson Khay Magundayao said the agency is working closely with other government agencies like the Department of Health (DOH) and Bureau of Internal Revenue (BIR) in conducting joint inspections and monitoring drug manufacturers, distributors, and pharmacies.

The initiative forms part of a broader effort to make medicines more affordable, particularly for patients with chronic conditions such as diabetes, hypertension, cancer, and kidney disease.

Magundayao said initial inspections have not yet uncovered major violations in the implementation of VAT exemptions on medicines.

“For our initial pilot test… Wala pa po tayong nakitang major violation,” she said.

(For our initial pilot test, we have not yet seen any major violations.)

She added that the FDA continues to verify whether medicines are properly registered and whether establishments have the required licenses to operate.

The regulatory agency is conducting nationwide inspections through its regional field offices covering Luzon, Visayas, and Mindanao.

Authorities are also coordinating with law enforcement units to ensure compliance with pricing rules, safety and quality standards.

“Tayo po ay umiikot nationwide para matiyak… Ang safety, efficacy at quality ng mga gamot sa merkado,” Magundayao said.

(We conduct nationwide inspections to ensure the safety, efficacy, and quality of medicines in the market.)

Fake medicines pose serious risks

Despite monitoring efforts, the FDA also expressed concern over the continued presence of counterfeit medicines in the market and online platforms.

“Napaka delikado po nito sa kalusugan… Maaaring mag-cause ng death kapag very serious ang cases,” Magundayao said.

(These are very dangerous to health… They may even cause death in serious cases.)

She said fake medicines may cause allergic reactions or fail to treat illnesses, posing serious health risks to patients.

The agency has also intensified law enforcement operations and coordination with the Bureau of Customs (BOC) to intercept shipments of counterfeit drugs entering the country.

The FDA reiterated that prescription medicines should not be purchased from unverified online sellers, especially those without physical stores.

“Hindi po natin binibili ang prescription medicine online,” Magundayao said.

(Prescription medicines should not be bought online.)

She said legitimate sellers must have proper licensing and a physical establishment, noting that online-only sellers without verifiable credentials should be considered a red flag.

Consumers are also advised to check product labels, expiration dates, and registration details before purchasing medicines.

To help the public, the FDA said consumers may verify medicines through its online verification portal to check if products are registered and legitimate.

It also encouraged the public to report suspicious products and establishments through its “e-sumbong” feature and hotlines.

The FDA said VAT exemption on medicines has helped reduce costs for patients, particularly those requiring long-term treatment.

Magundayao noted that VAT exemption may be combined with existing discounts for senior citizens and persons with disabilities. — JMA, GMA News