The Bureau of Internal Revenue (BIR) has released an updated list of value-added tax (VAT)-exempt medicines, expanding coverage to 2,263 drugs under Republic Act No. 10963 or the TRAIN Law and Republic Act No. 11534 or the CREATE Act, in a move aimed at easing healthcare costs for Filipino patients.
In Revenue Memorandum Circular (RMC) No. 27-2026 dated April 8, the BIR published the latest Food and Drug Administration (FDA)-endorsed compilation of essential medicines exempted from VAT. The update reflects continuing efforts to improve access to treatment for major and chronic illnesses.
According to the BIR, the list includes 702 medicines for cancer, 535 for hypertension, 327 for diabetes, 300 for mental health conditions, 171 for high cholesterol, 152 for kidney disease, and 76 for tuberculosis—covering a broad range of long-term and life-threatening conditions.
The FDA of the Department of Health said the revised list is part of ongoing policy coordination to ensure that essential and life-saving medicines remain more affordable, particularly for patients managing expensive and sustained treatments.
Finance officials, including Finance Secretary Frederick D. Go, said the measure supports the broader directive of President Ferdinand R. Marcos Jr. to improve healthcare affordability and reduce out-of-pocket expenses for Filipino households.
BIR Commissioner Charlito Martin R. Mendoza said the issuance is intended to directly support patients by lowering the cost burden of critical medicines. He added that the updated circular supersedes previous VAT-exempt listings and will remain in effect until further FDA revisions are issued.
The BIR also noted that the list will undergo periodic review in coordination with health authorities to reflect evolving treatment protocols and ensure continued relevance of coverage.
The expanded VAT exemption could provide incremental relief to patients with chronic conditions, particularly amid persistent inflationary pressures affecting household healthcare spending.
