MANILA, Philippines — Starting January 1, 2019, Filipinos suffering from diabetes, high cholesterol and hypertension will be able to buy cheaper medicines due to the provision of the tax reform law.
In a post in its social media account, the Department of Finance (DOF) reminded the public that starting next year, the purchase of drugs or medicines prescribed for these illnesses will no longer have any value-added tax (VAT).
MAGANDANG BALITA!
Simula January 1, 2019, ang mga gamot laban sa diabetes, high-cholesterol, at hypertension ay hindi na papatawan ng value-added tax (VAT).
Para sa karagdagang impormasyon tungkol sa tax reform program, bisitahin: https://t.co/Uu6un7BzLV.#DOFUpdates pic.twitter.com/zKx3R6TYco
— Department of Finance (@DOF_PH) December 27, 2018
The Tax Reform for Acceleration and Inclusion (TRAIN) law has allowed the government to collect more taxes from other products and services and finance more programs for health, education, and social assistance for indigent citizens.
President Rodrigo Duterte signed the Train law on December 19, 2017.
The Bureau of Internal Revenue (BIR), in its Revenue Regulation 25-2018 dated Dec. 21 and signed by Finance Secretary Carlos G. Dominguez III and BIR Commissioner Caesar R. Dulay, has already laid out the implementing rules and regulations (IRR) on the VAT-exempt status of drugs for the treatment of selected cardiovascular and related diseases.
“The exemption from VAT provided herein shall apply to the sale by manufacturers, distributors, wholesalers, and retailers of drugs and medicines prescribed for the treatment and/or prevention of diabetes, high cholesterol and hypertension starting January 1, 2019,” the BIR regulation said.
BIR also noted that “the importation of the above-described drugs and medicines shall be subject to VAT.” /muf