BIR Expands List of VAT-Exempt Medicines to Ease Healthcare Cost of Filipinos

As part of the government’s continuing efforts to make healthcare more accessible and affordable, the Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 87-2026, publishing the updated list of Value-Added Tax (VAT)-exempt medicines endorsed by the Food and Drug Administration (FDA) pursuant to Republic Act No. 10963 (TRAIN Law) and Republic Act No. 11534 (CREATE Act).

The issuance supports President Ferdinand R. Marcos Jr.’s directive during his 2026 State of the Nation Address (SONA) to expand access to quality healthcare by reducing the cost of essential medicines.

BIR Commissioner Charlito Martin R. Mendoza emphasized the Bureau’s commitment to implementing tax policies that directly improve the lives of Filipinos.

“The Bureau remains steadfast in implementing tax policies that directly benefit our people. 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 said.

With the latest update, the number of VAT-exempt medicines has increased to 2,277, including 14 newly added medicines. The expanded coverage helps reduce out-of-pocket medical expenses, particularly for Filipinos undergoing long-term treatment for chronic and life-threatening illnesses.

The updated list now covers medicines used in the treatment of:

* Cancer – 708 medicines

* Hypertension – 537 medicines

* Diabetes – 331 medicines

* Mental Illness – 300 medicines

* High Cholesterol – 172 medicines

* Kidney Disease – 152 medicines

* Tuberculosis – 77 medicines

Every peso saved through the VAT exemption helps families continue treatment, purchase essential medicines, and better manage their daily needs.

By making healthcare more affordable, the government also supports better treatment outcomes and improves the quality of life of millions of Filipinos.

While the Bureau continues to fulfill its mandate of generating revenues for national development, it likewise ensures that the tax system delivers meaningful and tangible benefits to the Filipino people.