Imee: All medicines must be VAT exempt

Ilocos Norte Gov. Imee Marcos has called for the exemption from the value added tax (VAT) of all medical drugs to make health services more affordable to the Filipino people as she pushed for a review of the Cheaper Medicines Act.

She lamented that the Cheaper Medicines Act, or the Universally Accessible Cheaper and Quality Medicines Act of 2008, failed to make medicines more affordable to the people because of provisions included in the law that favor the interests of big pharmaceutical companies in the country.

The Cheaper Medicines Act was enacted into law with the end-goal of making medicines more affordable and accessible to the people, especially the poor who cannot afford to buy expensive prescription drugs for their illnesses. But 10 years after the law was passed, prices of medicines, especially for critical diseases and illnesses, remain exorbitant.

To drastically bring down the prices of medicines, Marcos said that removing the VAT imposed on all medicines is necessary. She said the VAT exemption on the sale of vital medicines for diabetes, cholesterol and hypertension will not be enough. “Hindi sapat ang

VAT exemption sa mga gamot

para sa diabetes, cholesterol at hypertension. Kailangan lahat ng gamot ay maging VAT exempt na para bumaba ang presyo

nila,” she stressed. The Tax Reform for Acceleration and Inclusion Act, or TRAIN law mandates the removal of the 12 percent VAT on medicines for diabetes, high cholesterol and hypertension. The exemption takes effect on Jan. 1, 2019. The VAT exemption will apply to the “sale by manufacturers, distributors, wholesalers and retailers” of the medicines, which will be identified by the Food and Drug Authority.