BUSINESS
Advocates Philippines
BIR Expands VAT-Free Medicines List
Photo credit: BIR
The Bureau of Internal Revenue (BIR) has released an updated list of VAT-exempt medicines, covering a total of 2,263 drugs aimed at making healthcare more affordable for Filipinos.
The update comes through Revenue Memorandum Circular (RMC) No. 27-2026, issued on April 8, 2026. The list was endorsed by the Food and Drug Administration Philippines (FDA) and is anchored on key laws such as the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.
According to the FDA, the VAT-exempt medicines are intended to treat a wide range of illnesses. These include 702 drugs 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.
The move supports the directive of President Ferdinand Marcos Jr. to make healthcare more accessible and reduce the financial burden on patients, especially those dealing with long-term or critical conditions. The Department of Finance, led by Finance Secretary Frederick Go, is backing the implementation of these cost-cutting measures.
BIR Commissioner Charlito Martin Mendoza emphasized the importance of the update, saying, “This issuance forms part of the government’s continuing efforts to help ease the cost of essential medicines, especially for Filipinos managing chronic and critical illnesses.”
The latest circular replaces earlier issuances on VAT-exempt medicines and will remain in effect until a new list is released and endorsed by the FDA.
The update comes through Revenue Memorandum Circular (RMC) No. 27-2026, issued on April 8, 2026. The list was endorsed by the Food and Drug Administration Philippines (FDA) and is anchored on key laws such as the Tax Reform for Acceleration and Inclusion Law and the Corporate Recovery and Tax Incentives for Enterprises Act.
According to the FDA, the VAT-exempt medicines are intended to treat a wide range of illnesses. These include 702 drugs 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.
The move supports the directive of President Ferdinand Marcos Jr. to make healthcare more accessible and reduce the financial burden on patients, especially those dealing with long-term or critical conditions. The Department of Finance, led by Finance Secretary Frederick Go, is backing the implementation of these cost-cutting measures.
BIR Commissioner Charlito Martin Mendoza emphasized the importance of the update, saying, “This issuance forms part of the government’s continuing efforts to help ease the cost of essential medicines, especially for Filipinos managing chronic and critical illnesses.”
The latest circular replaces earlier issuances on VAT-exempt medicines and will remain in effect until a new list is released and endorsed by the FDA.
Apr 13, 2026
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