IN a bid to reduce out-of-pocket medical expenses, the Bureau of Internal Revenue (BIR) has expanded the list of Value-Added Tax (VAT)-exempt medicines to a total of 2,277, adding 14 new medications for critical health conditions.
The update was formalized through Revenue Memorandum Circular (RMC) No. 87-2026, which publishes the endorsed list from the Food and Drug Administration (FDA) in compliance with the TRAIN Law (Republic Act No. 10963) and the CREATE Act (Republic Act No. 11534).
This measure aligns directly with President Ferdinand R. Marcos Jr.’s directive during his 2026 State of the Nation Address to lower the cost of essential treatments across the nation.
The exemption heavily targets chronic and life-threatening illnesses, relieving financial pressure on patients requiring long-term care. The newly updated list includes:
- Cancer: 708 medicines
- Hypertension: 537 medicines
- Diabetes: 331 medicines
- Mental Illness: 300 medicines
- High Cholesterol: 172 medicines
- Kidney Disease: 152 medicines
- Tuberculosis: 77 medicines
BIR Commissioner Charlito Martin R. Mendoza reaffirmed the agency’s dedication to utilizing tax measures for public welfare, emphasizing that reducing taxes on vital pharmaceutical products yields direct savings for everyday Filipino families.
“By expanding the list of VAT-exempt medicines, we are helping make essential healthcare more affordable while supporting the President’s vision of a healthier and more resilient Philippines,” Commissioner Mendoza stated.
While the BIR maintains its core mandate of collecting government revenue for national growth, officials noted that tax policies must also offer tangible relief. Savings from tax exemptions allow patients to adhere strictly to treatment regimens, ultimately fostering better healthcare outcomes and improving quality of life nationwide.