A MEASURE has been filed in the House of Representatives seeking to grant a value-added tax (VAT) exemption to both generic and branded medicine.
“Given the rising cost of living today, price controls on medicine will not make it affordable,” TGP Party-list Representative Jose J. Teves, Jr. said of his House Bill No. 8565.
“One of the reasons for high prices of medicines is the VAT that is automatically added over and above the base prices,” he added.
The burden of paying the VAT is to be shifted to manufacturers, distributors or sellers of generic and branded medicines, according to the bill.
The VAT exemption will not affect discounts available to senior citizens and persons with disabilities.
The bill requires the Department of Health and the Food and Drug Administration to submit to Congress a list of generic and branded medicine to be covered by the VAT exemption.
The Philippine Statistics Authority estimates average per capita spending of P9,839.23 for healthcare goods and services in 2021, up 17% from a year earlier. — Beatriz Marie D. Cruz