FDA Expands VAT-Exempt Essential Medicines List with Two Additional Cancer Drugs

 

The Food and Drug Administration (FDA) has broadened the country's roster of value-added tax (VAT)-exempt essential medicines by including two additional treatments used in cancer care, reinforcing government efforts to make life-saving medications more financially accessible.

According to the FDA, the newly added medicines are Nimotuzumab 50 mg/10 mL solution for intravenous infusion and Ruxolitinib (as phosphate) 5 mg tablets. Their inclusion means these products are now exempt from the 12% VAT, potentially lowering costs for patients who require long-term or specialized treatment.

The latest update is anchored on Republic Act No. 11534, also known as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The law grants VAT exemption to qualified medicines prescribed for several serious medical conditions, recognizing that treatment costs can place a significant burden on Filipino families.

Beyond cancer medications, the CREATE Act also covers eligible medicines intended for the treatment of diabetes, hypertension, high cholesterol, kidney diseases, mental illnesses, and tuberculosis. Expanding the VAT-exempt list allows more qualifying pharmaceutical products to benefit from reduced taxation as they receive regulatory approval.

Removing VAT from essential medicines is intended to improve affordability by eliminating an additional tax component from retail prices. While the actual reduction may differ depending on market factors, the exemption is designed to ease the financial pressure on patients who often depend on continuous medication as part of their treatment plans.

The FDA continues to update the list of VAT-exempt medicines as more eligible products satisfy the requirements established under existing laws and regulations, supporting broader access to essential healthcare in the Philippines.