More anti-diabetes, cholesterol drugs to be VAT-exempt

The Food and Drug Administration (FDA) has required pharmaceutical companies to submit a list of products not included in the initial list of VAT-exempt medicine within 14 days.
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MANILA, Philippines — More drugs for diabetes, high cholesterol and hypertension are set to be exempted from value added tax (VAT).

The Food and Drug Administration (FDA) has required pharmaceutical companies to submit a list of products not included in the initial list of  VAT-exempt medicine within 14 days.

The FDA said it will later issue an addendum to reflect the drug products not included in the initial list.

The FDA earlier submitted to the Bureau of Internal Revenue a list of registered drugs for diabetes, high cholesterol and hypertension for VAT exemption.

However, the agency received numerous reports from the pharmaceutical industry that a number of medicine for these ailments were not included in the list.

Last January, the government started implementing the 12 percent VAT exemption on sale of medicine for diabetes, high cholesterol and hypertension as mandated by the Tax Reform for Acceleration and Inclusion or TRAIN law.

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