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Advocates Philippines
BIR Inspects Drugstores To Ensure VAT-Free Medicines Reach Filipinos
Photo credit: BIR
The government has intensified efforts to make medicines more affordable after the Bureau of Internal Revenue (BIR), together with the Department of Health (DOH) and the Food and Drug Administration (FDA), conducted a joint inspection in Muntinlupa City on May 14 to check whether VAT-exempt medicines are properly reaching Filipino consumers.
The inspection is part of the administration’s broader push to improve access to healthcare and reduce medicine costs, especially for patients who rely on maintenance drugs and long-term treatment.
According to the BIR, the move follows the directive of President Ferdinand Marcos Jr. to make essential medicines and healthcare services more accessible and affordable for Filipinos.
Under the guidance of Finance Secretary Frederick D. Go, the BIR said it continues to enforce tax relief measures aimed at easing the financial burden on patients by ensuring qualified medicines are properly exempted from Value-Added Tax (VAT).
Earlier, the BIR issued Revenue Memorandum Circular No. 27-2026, which contains the FDA-endorsed updated list of 2,263 VAT-exempt medicines and health products. The list includes medicines used for cancer, hypertension, diabetes, mental illness, high cholesterol, kidney disease, and tuberculosis.
BIR Commissioner Charlito Martin R. Mendoza stressed that the agency’s responsibility does not end with the release of tax guidelines and circulars.
“We have to make sure these policies are properly implemented so that Filipinos truly benefit from VAT-exempt medicines intended to ease the cost of treatment for chronic and critical illnesses. The BIR will continue to work closely with the DOH and FDA to assess whether drug establishments are properly implementing the pricing and availability of VAT-exempt medicines,” Commissioner Mendoza said.
“Magtutulungan po kaming mga ahensiya para masiguro na sa point of sale pa lang, makinabang na agad ang mga pasyente sa VAT exemption para sa mga medisinang ito,” he added.
Officials said similar inspections may continue in other areas as the government strengthens monitoring of pharmacies and healthcare establishments to ensure patients are receiving the benefits of VAT exemptions on essential medicines.
The inspection is part of the administration’s broader push to improve access to healthcare and reduce medicine costs, especially for patients who rely on maintenance drugs and long-term treatment.
According to the BIR, the move follows the directive of President Ferdinand Marcos Jr. to make essential medicines and healthcare services more accessible and affordable for Filipinos.
Under the guidance of Finance Secretary Frederick D. Go, the BIR said it continues to enforce tax relief measures aimed at easing the financial burden on patients by ensuring qualified medicines are properly exempted from Value-Added Tax (VAT).
Earlier, the BIR issued Revenue Memorandum Circular No. 27-2026, which contains the FDA-endorsed updated list of 2,263 VAT-exempt medicines and health products. The list includes medicines used for cancer, hypertension, diabetes, mental illness, high cholesterol, kidney disease, and tuberculosis.
BIR Commissioner Charlito Martin R. Mendoza stressed that the agency’s responsibility does not end with the release of tax guidelines and circulars.
“We have to make sure these policies are properly implemented so that Filipinos truly benefit from VAT-exempt medicines intended to ease the cost of treatment for chronic and critical illnesses. The BIR will continue to work closely with the DOH and FDA to assess whether drug establishments are properly implementing the pricing and availability of VAT-exempt medicines,” Commissioner Mendoza said.
“Magtutulungan po kaming mga ahensiya para masiguro na sa point of sale pa lang, makinabang na agad ang mga pasyente sa VAT exemption para sa mga medisinang ito,” he added.
Officials said similar inspections may continue in other areas as the government strengthens monitoring of pharmacies and healthcare establishments to ensure patients are receiving the benefits of VAT exemptions on essential medicines.
May 18, 2026
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