The Bureau of Internal Revenue (BIR) expanded its list of VAT-exempt medicines. The agency released Revenue Memorandum Circular (RMC) No. 27-2026 on April 8, 2026.
The list now contains 2,263 drugs. The Food and Drug Administration (FDA) provided the updated list. This policy follows the TRAIN Law and the CREATE Act.
The exempted drugs treat many serious illnesses. This includes 702 drugs for cancer and 535 for hypertension. There are 327 drugs for diabetes and 300 for mental illness. The list also covers 171 drugs for high cholesterol, 152 for kidney disease, and 76 for tuberculosis.
President Ferdinand R. Marcos Jr. wants healthcare to be more accessible. The Department of Finance supports these cost-cutting measures. Finance Secretary Frederick D. Go leads the agency.
BIR Commissioner Charlito Martin R. Mendoza explained the goal of the policy.
“This issuance forms part of the government’s continuing efforts to help ease the cost of essential medicines, especially for Filipinos managing chronic and critical illnesses,” Mendoza said.
The new circular replaces all previous lists. It will stay in effect until the FDA issues new updates.
