The Food and Drug Administration (FDA) and the Bureau of Internal Revenue (BIR) are working together to cut the prices of medicine for senior citizens by means of exemption from the value-added tax (VAT), according to a news article by the Philippine News Agency (PNA). It should be noted that previously President Ferdinand “Bongbong” Marcos, Jr., ordered the FDA to implement a 20 percent discount and VAT exemption for senior citizens under RA 9994 or Expanded Senior Citizens Act of 2010.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
The Food and Drug Administration (FDA) is working with the Bureau of Internal Revenue (BIR) to bring down prices of medicines for senior citizens through exemption from value-added tax (VAT).
FDA Director General Samuel Zacate said the exemption of VAT coverage will be through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) or Republic Act (RA) No. 11534.
“Basically, the exemption for VAT is through a law – iyong (the) CREATE Law. So, those medicines have been declared by the FDA, endorsed to the BIR para matanggal or mawala iyong kanilang (to remove) VAT,” Zacate said in a news forum in Quezon City on Saturday.
RA 11534 provides VAT exemption to certain medicines for hypertension, cancer, mental illnesses, tuberculosis, kidney diseases, diabetes, high cholesterol, as well as Covid-19 drugs and medical devices.
Pursuant to the CREATE law, Zacate said the FDA is directed to identify and transmit the list of approved medicines for VAT exemption to other implementing agencies, such as the BIR.
“Basically…we only endorse it to the BIR kasi kami po iyong nagdi-determine kung ano, para saan talaga iyong gamot. So, FDA ang magsasabi, kung papaano iyong mekanismo, kung paano tatanggalin iyong gamot (because we are the ones who determine what, what your medicine is really for. So, FDA will say, how your mechanism, how to withdraw your drug). So, it’s a joint process po of the FDA and the BIR,” he said.
Let me end this piece by asking you readers: What is your reaction about this recent development? Are there lots of senior citizens in your local community who are aware of this development?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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