More meds for cancer, diabetes, mental illness in VAT-free list

FDA expands list of these kinds of medicine that would be exempted from value-added tax

Food and Drug Administration

MANILA – The Food and Drug Administration (FDA) has expanded the list of medicines exempted from value-added tax (VAT) to ensure accessible treatment of serious illnesses affecting Filipinos.

Seven medicines were added to the list to help patients suffering from cancer, diabetes, and mental illness in reducing their out-of-pocket expenses.

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• Degarelix: Freeze-dried powder for solution for injection (80 mg and 120 mg).
• Tremelimumab: Concentrate for solution for infusion (25 mg/1.25 mL, 20 mg/mL).

For diabetes:
• Sitagliptin: Film-coated tablet (25 mg, 50 mg, 100 mg).
• Sitagliptin (as hydrochloride) + Metformin Hydrochloride: Film-coated tablet (50 mg/1 g, 50 mg/850 mg).
• Sitagliptin (as hydrochloride monohydrate): Film-coated tablet (25 mg, 50 mg).
• Linagliptin: Film-coated tablet (5 mg).

For mental illness:
• Clomipramine Hydrochloride: Film-coated tablet (25 mg).
• Chlorpromazine (as hydrochloride): Tablet (200 mg).
• Midazolam: Film-coated tablet (15 mg).

The FDA also clarified some changes in the entries that were previously uploaded.

It noted that the medicine “Chorionic Gonadotrophin” has been changed to “Human Chorionic Gonadotropin” with a dosage strength of 5000 IU as powder for injection. Also, it was removed from the list as it is not a medication for cancer.

The classification and inclusion of medicines in the list for VAT exemption are based on their indications, the FDA said.

Republic Act (RA) 10963 (Tax Reform for Acceleration and Inclusion Act) and RA 11534 (Corporate Recovery and Tax Incentives for Enterprises Act) state that VAT exemptions are given to medicines used in the treatment of cancer, diabetes, mental illness, and other serious diseases.

Meanwhile, changes in the list will be implemented once the FDA releases an advisory as stated in the Implementing Guidelines of VAT Exemption on Several Health Products in the Joint Administrative Orders) No. 2-2018 at No. 2021-0001. (PNA)