MANILA, Philippines – Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, prescription medicines for diabetes, hypertension and high cholesterol will be free of the 12% valued added tax.
This means that pharmacies who will not give discounts to patients of the said conditions will violate the law and definitely face appropriate charges.
“Ang panawagan natin sundin natin ang batas para sa ganoon hindi tayo magkaroon ng problema. Otherwise baka kayo makasuhan,” reminded Health Secretary Francisco Duque III.
Meanwhile, Finance Assistant Secretary Tony Lambino clarified that discounts for the said specific medicines will not be limited to senior citizens and persons with disability (PWD) only but to all patients in need of the said medicines.
Prior to this year, senior citizens and PWDs have been enjoying the VAT exemption in addition to the 20% discount they get when buying the said medicines.
Lambino said the VAT exemption was expanded this year to cover patients below 60 years old.
“Ito po ngayon ang bago nating exemption ay para naman po sa lahat dahil noon po seniors at saka mga PWDs lang po ang VAT exempt,” Lambino explained.
Because of the measure, the government will lose P3.6 billion in tax collection, according to Lambino.
Meanwhile, the Department of Finance (DOF) is pushing for the Package 2 Plus of the Comprehensive Tax Reform Program to address the financial gap following the implementation of the Universal Health Care Law.
“Ang financing gap ay around P40 billion at gusto nating kunin iyan sa alcohol at saka tobacco,” Lambino said.
The DOF reminds patients to secure an authorized prescription when purchasing the above mentioned medicines to avail for the discounted price. – Marje Pelayo (with reports from Rey Pelayo)
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