The Bureau of Internal Revenue (BIR) is urging the public to report pharmacies that continue to impose value-added tax (VAT) on medicines that are already exempt, following the issuance of Revenue Memorandum Circulars (RMC) Nos. 59-2025 and 62-2025, which expanded the list of VAT-exempt medicines.
In a recent television interview, BIR Commissioner Romeo Lumagui Jr. said that “marami na tayong naririnig na ganyan na sinasabi na ibang mamimili eh nakikita nila nagpapataw pa rin ng VAT. Kung maka-encounter kayo ng ganito, maaaring i-report ng publiko ang mga hindi sumusunod na botika sa aming ahensya, sa BIR. Pwede po tayong i-contact sa contact_us@bir.gov.ph.”
The BIR chief added that the public may also file complaints with the Food and Drug Administration (FDA) and the Department of Trade and Industry (DTI). Reports must include the name of the establishment, its address, and details of the receipt to ensure prompt action.
“Patuloy ang koordinasyon ng BIR sa FDA at DOH upang mapalawak pa ang saklaw ng VAT exemption.”
Commissioner Lumagui emphasized that the exemptions are already in effect as the BIR has already circulated the relevant issuances. The BIR issued RMC No. 59-2025 on June 11, 2025, which disseminates the latest list of VAT-exempt medicines following recommendations from the FDA.
“Ang Revenue Memorandum Circular number 59-2025 ay nilabas natin noong June 11, 2025 upang ipalaganap ang bagong listahan ng mga gamot na hindi napapatawan ng value added tax. Alinsunod sa rekomendasyon ng FDA, sakop nito ang siyam na bagong gamot para sa cancer, diabetes, hypertension, kidney disease at tuberculosis,” said Lumagui.
These medicines, he stressed, are essential maintenance and life-saving drugs, and that their inclusion in the list of VAT-exempt medicines is part of government efforts to make much-needed medical treatment affordable to all.
He pointed out that based on the two new issuances, “may kabuoang 19 na mga gamot ang nadagdag sa listahan ng VAT exempt medicines,” medicines used to treat cancer, diabetes, hypertension, high cholesterol, kidney disease, tuberculosis, and mental illness.
“Ang mga ito ay mga maintenance at life saving medicines na ngayon ay hindi napapatawan ng VAT. Isang konkretong hakbang para mas mapagaan ang gastusin ng mga pasyente.”
The lawyer assured the public that the BIR is closely monitoring pharmaceutical companies and retailers, in coordination with the FDA, DOH, and DTI, to ensure the benefits of the exemption are passed on to consumers.
“Patuloy ang koordinasyon ng BIR sa FDA at DOH upang mapalawak pa ang saklaw ng VAT exemption,” he said. “Of course hangad natin na mas maraming maintenance at life saving medicines ang maging abot kaya para sa bawat Pilipino dahil yan naman din ang gusto ng ating mahal na Pangulo na maging affordable din ang mga ganitong necessary na mga medicines.”
The newly VAT-exempt medicines under RMC Nos. 59-2025 and 62-2025 are:
Medicines for Cancer:
– Bortezomib
– Lenvatinib (as mesylate)
– Lenalidomide
– Paclitaxel
– Tegafur + Gimeracil + Oteracil Potassium
Medicines for Diabetes:
– Saxagliptin (as hydrochloride) + Dapagliflozin (as propanediol monohydrate)
– Metformin Hydrochloride + Teneligliptin (as hydrobromide hydrate)
Medicines for Hypertension:
– Losartan potassium + Rosuvastatin (as calcium) + Amlodipine (as camsilate)
– Metoprolol tartrate + Ivabradine (as hydrochloride)
Medicine for High Cholesterol:
– Atorvastatin (as calcium) + Fenofibrate
Medicine for Kidney Disease:
– Peritoneal Dialysis Solution with 2.5% Dextrose
Medicine for Tuberculosis:
– Rifampicin + Isoniazid + Pyrazinamide
Medicine for Mental Illness:
– Lamotrigine (including chewable/dispersible, orally disintegrating, and regular tablet forms)
Under Section 12 of Republic Act No. 11534 or the CREATE Act, and RA No. 10963 or the TRAIN Law, VAT exemptions are granted for select health products. These become effective upon official issuance of the FDA advisory endorsing the updated list of exempted medicines.
