Section 12 of Republic Act (RA) No. 11534 known as the “Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act” provided Value-Added Tax (VAT) Exemption to certain health products including, Drugs for Hypertension, Cancer, Mental Illnesses, Tuberculosis, Kidney Diseases, Diabetes, and High Cholesterol. Pursuant to the said law, the Food and Drug Administration (FDA) is directed to identify and transmit the VAT-Exempt Health products to other implementing agencies such as the Bureau of Internal Revenue (BIR), Bureau of Customs and Department of Trade and Industry.
Relative thereto, the FDA has issued FDA Advisory (FA) No. No.2023-0256 which provided the new implementation date of updates on the List of VAT-Exempt Health products, pursuant to BIR Revenue Memorandum Circular No. 99-2021.
In this regard, provided below are the latest updates on the List of VAT-Exempt Health Products pursuant to RA 11534, effective upon the issuance of this Advisory:
I. Inclusion
A. Medicines for Cancer
| Generic Name | Dosage Strength | Dosage Form |
| Sonidegib (as phospate) | 200 mg | Capsule |
| Pemetrexed (as disodium heptahydrate) | 100 mg | Lyophilized Powder for IV Infusion |
| Asciminib (as hydrochloride) | 20 mg | Film-Coated Tablet |
| Asciminib (as hydrochloride) | 40 mg | Film-Coated Tablet |
| Palbociclib | 75 mg | Film-Coated Tablet |
| Palbociclib | 100 mg | Film-Coated Tablet |
| Palbociclib | 125 mg | Film-Coated Tablet |
| Pemetrexed (as disodium hemipentahydrate) | 100 mg | Powder for Concentrate for Solution for Infusion (I.V.) |
| Pemetrexed (as disodium hemipentahydrate) | 10 mg/mL (500mg/50 mL) | Solution for Injection (IV Infusion) |
| Cabazitaxel | 60 mg/1.5 mL | Concentrate for Solution for Injection (I.V.) |
| Entrectinib | 100 mg | Capsule |
| Entrectinib | 200 mg | Capsule |
B. Medicines for Hypertension
| Generic Name | Dosage Strength | Dosage Form |
| Losartan Potassium + Amlodipine (as besilate) | 100 mg/10 mg | Film-Coated Tablet |
| Losartan Potassium + Amlodipine (as besilate) | 100 mg/5 mg | Film-Coated Tablet |
| Irbesartan + Amlodipine (as Besilate) | 300 mg/5 mg | Film-Coated Tablet |
| Irbesartan + Amlodipine (as Besilate) | 300 mg/10 mg | Film-Coated Tablet |
C. Medicines for Mental Illness
| Generic Name | Dosage Strength | Dosage Form |
| Cariprazine (as hydrochloride) | 1.5 mg | Capsule |
| Cariprazine (as hydrochloride) | 3 mg | Capsule |
| Cariprazine (as hydrochloride) | 4.5 mg | Capsule |
| Cariprazine (as hydrochloride) | 6 mg | Capsule |
Further, provided in the Annex is the signed letter dated 05 February 2024, endorsing the said updates to the BIR.
Should you have any question/clarifications, you may contact the FDA Policy and Planning Service via email at [email protected].
Dissemination of this Advisory to all concerned is kindly requested.