Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. _______ 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
AN ACT 
GRANTING EXEMPTION OF GENERIC AND BRANDED MEDICINES FROM 
VALUE-ADDED TAX (VAT) 
EXPLANATORY NOTE 
The high prices of medicines, both generic and branded, are partly driven by the Value-
Added Tax (VAT), which is added on top of the base prices. As an indirect tax, VAT is typically 
passed on to consumers, burdening the Filipino people with an additional cost every time they 
purchase medicine. This goes against the constitutional obligation to make health affordable, 
manifested Article XIII, Section 11 of the 1987 Constitution: 
“The State shall adopt an integrated and comprehensive approach to health 
development which shall endeavor to make essential goods, health and other social 
services available to all the people at affordable cost. There shall be priority for the needs 
of the underprivileged sick, elderly, disabled, women, and children." 
To address this issue and make medicines more affordable, this measure proposes 
exempting consumers from paying VAT on both generic and branded drugs. Instead, the tax 
burden would shift to the manufacturers, distributors, or sellers of these medicines, making it 
easier for Filipinos to access the medications they need 
In view of the foregoing, urgent passage of this bill is earnestly sought. 
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
January 13, 2025
5:30 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. _______ 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
AN ACT 
GRANTING EXEMPTION OF GENERIC AND BRANDED MEDICINES FROM 
VALUE-ADDED TAX (VAT) 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as "An Act Exempting Medicines From 
Value-Added Tax Act". 
SEC. 2. Declaration of Policy. - It is the policy of the State to protect and promote the right to 
health of the people and to ensure that each individual has access to information and services that 
will bring about health and well-being. The State shall adopt an integrated and comprehensive 
approach to health development which shall endeavor to make essential health services available 
to all the people at an affordable cost. 
SEC. 3. Definition. - 
(1) Value-Added Tax or VAT refers the tax on consumption levied on the sale, barter,
exchange or lease of goods or properties and services in the Philippines and on
importation of goods into the Philippines. It is an indirect tax, which may be shifted or
passed on to the buyer, transferee or lease of goods, properties or services.
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(2) Generic Drugs or Medicine refer to drugs not covered by patent protection and which are 
labeled solely by their international non-proprietary or generic name. 
 
(3) Branded Drugs or Medicine refer to a drug or medicine sold by a drug company under a 
specific name or trademark and that is protected by a patent. 
 
SEC. 4. Coverage. - The Department of Health (DOH) and the Food and Drugs Administration 
(FDA) shall submit to Congress a list of generic and branded medicines as defined in this Act. 
 
The generic and branded medicines included in said list shall be exempted from the payment of 
Value-Added Tax (VAT) by the consumers and shall be automatically applied upon purchase of 
the medicine or drug. The said exemption shall be applied notwithstanding any discount such as 
Senior Citizen's discount, and Persons with Disability (PWD) discount among others a person 
may be entitled. 
 
SEC. 5. Repealing Clause. - All laws, decrees, executive orders, and other presidential 
issuances which are inconsistent with this Act are hereby repealed, amended or modified 
accordingly. 
 
SEC. 6. Separability Clause. - If, for any reason, any section or provisions of this Act is held 
unconstitutional or invalid, the other sections or provisions hereof shall not be affected thereby. 
 
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least 
two (2) national papers of generical circulation or Official Gazette. 
 
Approved,