The Philippine government has announced the expansion of its value-added tax (VAT) exemption on a new list of medicines targeting major illnesses, including cancer, diabetes, hypertension, high cholesterol, dialysis, and mental health conditions.

This directive was issued by Finance Secretary Ralph G. Recto to the Bureau of Internal Revenue (BIR), aimed at enhancing healthcare affordability for Filipinos.

This move aligns with President Ferdinand R. Marcos Jr.'s initiative to promote universal healthcare in the country.

Secretary Recto, a long-time advocate for health issues, played a crucial role in the legislative framework that supports VAT-free medicines during his previous tenure in the Senate.

He was instrumental in drafting the Tax Reform for Acceleration and Inclusion Act (R.A. 10963) and co-authoring the Corporate Recovery and Tax Incentives for Enterprises Act (R.A. 11534), both of which have contributed to reducing financial burdens on patients by expanding the list of VAT-exempt medicines.

As of June 4, 2025, the BIR published the updated list of new medicines exempt from the 12 percent VAT, reflecting approvals from the Food and Drug Authority (FDA).

Among the newly exempt cancer treatments is Tegafur+Gimeracil+Oteracil Potassium.

For diabetes management, Metformin Hydrochloride+Teneligliptin is now VAT-free.

Patients experiencing high cholesterol can benefit from Atorvastatin + Fenofibrate, while those with hypertension now have access to Metoprolol tartrate + Ivabradine without VAT.

Additionally, Lamotrigine, a medication for mental health disorders, will also be available without VAT.

This initiative underscores the Philippine government's commitment to easing the financial pressures related to healthcare and improving public health outcomes amid challenges faced by citizens in managing chronic illnesses.