By The Financial District
Mar 172 min
The Food and Drug Administration (FDA) is actively collaborating with the Bureau of Internal Revenue (BIR) to reduce the prices of medicines for senior citizens by exempting selected essential medications from the Value Added Tax (VAT).
RA 11534 mandates VAT exemption for specific medicines targeting hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes, and high cholesterol, as well as drugs and medical devices related to COVID-19.
During the Saturday News Forum in Quezon City, FDA Director General Samuel Zacate elucidated that the exemption from VAT coverage is facilitated through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act or Republic Act (RA) No. 11534.
"Essentially, the exemption for VAT is stipulated by law, specifically the CREATE Law. Thus, those medicines identified by the FDA have been submitted to the BIR to waive the VAT on these essential medications," Zacate emphasized.
He underscored that RA 11534 mandates VAT exemption for specific medicines targeting hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes, high cholesterol, as well as drugs and medical devices related to COVID-19.
Explaining further, Zacate outlined that the CREATE law tasks the FDA with identifying and transmitting the list of approved medicines for VAT exemption to other implementing agencies such as the BIR.
"In essence... we merely endorse it to the BIR since the FDA determines which medicines warrant exemption from VAT. Hence, it's a collaborative effort between the FDA and the BIR," he stated.
Dr. Zacate also highlighted that President Ferdinand R. Marcos Jr. has directed the FDA to enforce a 20 percent discount and VAT exemption for senior citizens under RA 9994 or the Expanded Senior Citizens Act of 2010.