FDA clarifies VAT-exemption on certain medicines
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FDA clarifies VAT-exemption on certain medicines
A health worker administers the COVID-19 vaccine booster shot during a symbolic vaccination at the Generika Drug Store, in Taguig City on January 20, 2022. “Resbakuna sa mga Botika,” initially available in 7 drug stores in Metro Manila, allows walk in vaccination for individuals aged 18 years old and above, except for senior citizens and persons with comorbidities, according to DOH.

MANILA - Manufacturers will benefit from the exemptions on value-added tax for certain medicines, the Food and Drug Administration said on Friday.
MANILA - Manufacturers will benefit from the exemptions on value-added tax for certain medicines, the Food and Drug Administration said on Friday.
In an interview on PTV’s Bagong Pilipinas Ngayon, FDA Spokesperson Atty. Pamela Sevilla clarified that exemptions are imposed on manufacturers as aligned with the National Internal Revenue Code.
In an interview on PTV’s Bagong Pilipinas Ngayon, FDA Spokesperson Atty. Pamela Sevilla clarified that exemptions are imposed on manufacturers as aligned with the National Internal Revenue Code.
Sevilla explained that when buying VAT-exempt medicines, prices should be significantly lower as manufacturers are now exempt from VAT, but consumers will still have to pay VAT on their final bill.
Sevilla explained that when buying VAT-exempt medicines, prices should be significantly lower as manufacturers are now exempt from VAT, but consumers will still have to pay VAT on their final bill.
“Kung VAT-exempt bakit hindi nababawasan ‘yong 12 percent VAT ‘pag nabibili? Itong VAT-exempt po na ito, beneficial sa businesses o enterprise na nagmamanufacture ng gamot. ‘Pag binibli po natin, kung dati nabibili natin before at P100 price, ‘pag binili po ngayon dapat nasa P90 o P80 price,” Sevilla said.
“Kung VAT-exempt bakit hindi nababawasan ‘yong 12 percent VAT ‘pag nabibili? Itong VAT-exempt po na ito, beneficial sa businesses o enterprise na nagmamanufacture ng gamot. ‘Pag binibli po natin, kung dati nabibili natin before at P100 price, ‘pag binili po ngayon dapat nasa P90 o P80 price,” Sevilla said.
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FDA recently added four cancer medications, nine diabetes medications, and three medications for mental illness to its list of VAT-exempt medicines.
FDA recently added four cancer medications, nine diabetes medications, and three medications for mental illness to its list of VAT-exempt medicines.
While the law on exempting certain medicines from VAT was to allow businesses to recover from the COVID-19 pandemic, FDA said the initiative benefits both enterprises and consumers who depend on these medicines.
While the law on exempting certain medicines from VAT was to allow businesses to recover from the COVID-19 pandemic, FDA said the initiative benefits both enterprises and consumers who depend on these medicines.
The list of VAT-exempt medicines can be viewed on the FDA website.
The list of VAT-exempt medicines can be viewed on the FDA website.
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