TRAIN law enables to reduce prices of meds meant for people suffering from diabetes, hypertension and with high cholesterol. The reason…. they are now VAT-free.
Based on regular customers buying prescribed medicines for diabetes, high cholesterol and hypertension confirmed that the amount they paid for their meds have dropped when they purchased yesterday, as per announced by the government. This was in compliance with Section 109 (AA) of the National Internal Revenue Code, as amended by Republic Act 10963 or TRAIN (Tax Reform for Acceleration and Inclusion) law. All these prescribed medicines are now exempted from VAT (Value-added tax) starting yesterday.
The DOF (Dept. of Finance) issued a statement that the VAT-free drugs will also be implemented as prescribed under Joint Administrative Order of the DOF, the Bureau of Internal Revenue and Food and Drug Administration (FDA) and BIR. The DOH gave assurance that it would provide support for the implementation of the exemptions to bring relief to millions of Filipinos being affected by the said illness.
According the DOH, Filipinos need affordable medicine particularly if taken daily to prevent serious and even further health complications. On the other hand, it will raise prices on commodities like sugary beverages, alcohol and cigarettes, products known to be harmful to the public. However, BIR clarified that “the importation of the mentioned prescribed medicines will be subjected to VAT under the amended TAX code.”