FDA Expands VAT-Free Medicines List: What This Means for Filipino Patients 

The Food and Drug Administration (FDA) has endorsed 10 additional drug products for Value-Added Tax (VAT) exemption, making essential medicines more affordable for Filipinos. The newly exempted medicines include treatments for cancer, diabetes, hypertension, high cholesterol, and mental health disorders.

This move aligns with the government’s ongoing efforts to reduce healthcare costs and improve access to life-saving treatments, particularly for individuals with chronic and life-threatening conditions.

Which Medicines Are Now VAT-Free?

The FDA Advisory No. 2025-0510, issued on June 4, 2025, lists the following medicines as VAT-exempt:

High Cholesterol

✔ Atorvastatin (as calcium) + Fenofibrate – 20 mg/160 mg

Cancer

✔ Tegafur + Gimeracil + Oteracil Potassium – 20 mg/5.8 mg/19.6 mg
✔ Tegafur + Gimeracil + Oteracil Potassium – 25 mg/7.25 mg/24.5 mg

Diabetes

✔ Metformin Hydrochloride + Teneligliptin (as hydrobromide hydrate) – 1 g/20 mg
✔ Metformin Hydrochloride + Teneligliptin (as hydrobromide hydrate) – 500 mg/20 mg

Hypertension

✔ Metoprolol tartrate + Ivabradine (as hydrochloride) – 50 mg/5 mg
✔ Metoprolol tartrate + Ivabradine (as hydrochloride) – 25 mg/5 mg

Mental Illness

✔ Lamotrigine – 5 mg (dispersible/chewable tablet) ✔ Lamotrigine – 25 mg (oral dispersible tablet)
✔ Lamotrigine – 25 mg (tablet)

Why This Matters for Filipino Patients

The removal of the 12% VAT on these medications is expected to significantly lower costs, making lifesaving treatments more accessible to patients battling chronic illnesses.

Key Benefits:

✅ Lower medication costs – Patients will save thousands of pesos annually.
✅ Improved healthcare access – More Filipinos can afford essential treatments.
✅ Stronger support for chronic disease management – Ensuring consistent medication adherence.

Government’s Commitment to Affordable Healthcare

The VAT exemption is part of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which aims to reduce healthcare-related financial burdens. Finance Secretary Ralph Recto has directed the Bureau of Internal Revenue (BIR) to swiftly implement the VAT exemption, ensuring immediate benefits for Filipino patients.

The FDA’s expansion of VAT-free medicines is a major step toward affordable healthcare, ensuring that Filipinos battling chronic illnesses can access life-saving treatments without financial strain.

As the government continues to strengthen healthcare policies, patients are encouraged to check with their local pharmacies to see if their medications are now VAT-exempt.