A SWEET SURPRISE FOR 2019

A SWEET SURPRISE FOR 2019

by JOP

thermometer-1539191_960_720

Everyone is hoping that 2019 will be a much better and fruitful year for each and every Filipinos. Indeed, the Philippines has received a very good news in welcoming 2019. In a joint administrative order No. 2-2018 (dated December 21, 2018) by the Department of Finance (DOF), Department of Health (DOH), Bureau of Internal Revenue (BIR), and the Food and Drugs Authority (FDA) drugs versus diabetes, hypertension, and high cholesterol are now VAT-exempt under the TRAIN Law. Starting January 1, 2019, sales of the said drugs will be now more affordable because of the said exemption. This is due to the provision of the Tax Reform for Acceleration and Inclusion (TRAIN) Law. The first package of TRAIN lowered personal income taxes, but offset losses by increasing duties on fuel, sweetened beverages, and vehicles. It also limited VAT exemptions to necessities such as raw agriculture, food, education, and health. All patients who have prescriptions for the said drugs will benefit on such exemption. On the other hand, manufacturers, distributors or wholesalers, and retailers will benefit from selling every prescribed medication for such ailment if it is already in its final consumable form. It, however, retained the exemption on purchases of senior citizen and persons with disability (PWD) under the Senior Citizen Act and the Magna Carta for Persons with Disability.

A list of VAT-exempt Diabetes, Hypertension, and High Cholesterol Drugs can be accessed at the DOH and BIR websites. The list will also be posted on DFA-licensed drugstores, hospital pharmacies, and other authorized sellers of medicines and health products.

Violators of the VAT exemption are punishable by law with a fine of not more than Php 1,000 or imprisonment of not more than 6 months or both.

For a more detailed regulations, you may visit their respective websites.

Leave a Reply

Your email address will not be published. Required fields are marked *