BIR: Over 2.2K medicines are now VAT-exempt
The Philippine Bureau of Internal Revenue has expanded its list of VAT-exempt medicines to 2,277 items. This initiative aims to lower out-of-pocket healthcare costs for patients suffering from chronic and life-threatening conditions.
Why it matters
It directly impacts the affordability of essential healthcare for a large population, aligning with government efforts to reduce medical financial burdens.
HEALTHCARE. A pharmacist checks the stocks at the Pambansang Botika at Bakuna para sa Mamamayan (National Pharmacy and Vaccination for Citizens) which was launched at the Social Security System head office in Diliman, Quezon City on Jan. 26, 2026. The Bureau of Internal Revenue said Wednesday (Aug. 5, 2026) that a a total of 2,277 medicines are now exempted from value added tax. (PNA photo by Joan Bondoc)
MANILA – Over 2,200 medicines are now value-added tax (VAT)-exempt, the Bureau of Internal Revenue (BIR) announced Wednesday.
The BIR released Revenue Memorandum Circular (RMC) No. 87-2026, which updated the list of 2,277 VAT-exempt medicines endorsed by the Food and Drug Administration (FDA) pursuant to Republic Act 10963 (TRAIN law) and Republic Act 11534 (CREATE Act).
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in