The compassionate nature of any government or society may be measured through many ways, and one of them is the way it treats its older population.
In the case of the Philippines, one might say with confidence that our country has not been remiss in giving the senior citizens the benefits that they truly deserve. It is a way of giving back to them the years of service to society and their families that they so dutifully performed.
Filipino seniors started to enjoy the full 20 percent discount on medicine and other products and services in July, 2010 with the signing of the implementing rules and regulations of the Expanded Senior Citizens Act of 2010. The IRR exempts senior citizens from the 12 percent value added tax (VAT), effectively allowing them full 20 percent discount on purchases.
Now, not only the seniors but also the general public is about to reap the benefits of VAT-free medicine, or at least certain medicines for particular diseases.
Earlier, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 17, series of 2024, containing the list of additional medicines to be covered by VAT exemption as provided by Republic Act 10963 or the Tax Reform for Acceleration and Inclusion Act.
The BIR revised the list of over 2,000 VAT-exempt medicines, adding 22 drugs more. These pharmaceutical items are intended for the prevention and management of diabetes, hypertension, cancer, high cholesterol, mental illnesses, tuberculosis, and kidney diseases, as well as medicines and medical devices specifically used for the prevention and treatment of COVID-19.
This move by the Bureau of Internal Revenue is a game changer for Filipinos, many of whom are barely making enough to maintain their normal healthy lives without having to contend with the high cost of medical care. But when a health emergency occurs, many Filipino families are left without a choice but to go deeper into debts. So here, government intervention such as expanding the list of VAT-free drugs is always a welcome development.
For the guidance of the public, the BIR released the batch of medicines added to the list which are exempted from VAT. These are sonidegib capsule (200 mg), pemetrexed capsule(100mg), asciminib tablet (20 and 40mg), palbociclib tablet (75, 100 and 125mg), pemetrexed (as disodium hemipentahydrite), cabazitaxel (60mg/1.5ml concentrate for injection), and entrectinib capsule (100mg and 200mg), all for cancer.
Also exempted are losartan potassium+amlodipine (in 10mg, 100mg and 5mg tablets), as well as irbesartan+amlodipine (as besilate) in 300 mg/5 mg, and 300mg/10mg tablets. These two drugs are taken by individuals with hypertension problems. For mental illness, cariprazine (as hydrochloride) in 1.5mg, 3 mg, 4.5mg and 6mg capsules are also free from VAT coverage.
Government intervention in the setting of retail prices of medicine is one thing, but implementation—which is left in the hands of private drugstores—is another. In bigger establishments, they have printed the complete list of VAT-free drugs for the public to see, but it is highly likely that the smaller stores are not even aware of this new rule.
It is for every one of us to monitor and ensure that all drugstores are following the new rules.
#WeTakeAStand #OpinYon #OpinYonColumn #AColumnByDiegoCagahastian #CaringforSenorCitizen