The Philippine government has expanded the list of value-added tax (VAT)-exempt medicines to cover more treatments for cancer, diabetes, hypertension, high cholesterol, and mental illnesses, in a move aimed at easing healthcare costs and improving access to essential drugs.

Finance Secretary Ralph Recto directed the Bureau of Internal Revenue (BIR) to fast-track implementation of the new exemptions following the release of an updated list by the Food and Drug Administration (FDA) on June 4.

“Napakalaking ginhawa po nito para sa mga Pilipino, lalo na sa mga kapus-palad na hindi kayang bumili ng mamahaling gamot,” Recto said.

“Hindi lang po tayo tumutulong na pagaanin ang gastos—binibigyan din natin sila ng pag-asang gumaling at makumpleto ang gamutan. Sisiguraduhin po natin na ang kalusugan ay abot-kaya ng bawat Pilipino,” the Finance chief added.

The latest list includes cancer drug Tegafur+Gimeracil+Oteracil Potassium; diabetes treatment Metformin Hydrochloride+Teneligliptin; cholesterol-lowering medication Atorvastatin+Fenofibrate; hypertension drug Metoprolol Tartrate+Ivabradine; and Lamotrigine, used for managing mental illness. These are now exempt from the 12% VAT.

The initiative aligns with President Ferdinand Marcos Jr.’s push for universal healthcare and builds on past legislation that removed VAT on life-saving drugs. Recto, a former senator and long-time health advocate, authored the Tax Reform for Acceleration and Inclusion (TRAIN) Act and co-authored the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, both of which paved the way for expanded VAT exemptions.

The move reflects a broader government strategy to reduce out-of-pocket expenses for patients and improve public health outcomes in a country where high medicine costs remain a barrier to treatment.