EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
S. No.
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*19 
JUI.-1 P2:16
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Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
EXEMPTING DRUGS AND MEDICINES PRESCRIBED FOR MENTAL HEALTH 
CONDITIONS FROM VALUE-ADDED TAX, AMENDING FOR THE PURPOSE 
SECTION 109 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS 
AMENDED
EXPLANATORY NOTE
In 2018, Republic Act No. 11036 also known as the Mental Health Act was 
signed into law, recognizing mental health as a real problem that threatens the well­
being of many in our nation. The passage of this law made mental health services 
accessible, however, it did not cover the cost of drugs and medicines prescribed to 
sustain the treatment and prevention of mental health conditions.
According to the Philippine Statistics Authority (PSA), mental illness and 
mental retardation are the third (3rd) and fourth (4th) most common disabilities in the 
country today. Further, a study conducted by the Department of Health (DOH) 
showed that among government employees in Metro Manila, 32% of the 327 
respondents have experienced mental health problems in their lifetime.


The primary objective of this Act is to lower the cost of drugs and medicine 
prescribed for mental health by exempting it from value-added tax. This bill aims to 
make mental healthcare accessible and sustainable for all.
The passage of this bill into law is earnestly sought.
RAMON BONG REVILLA, JR.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
S E N A T E
76
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tarp
*19 JUL-1 P2--16
Introduced by SENATOR RAMON BONG REVILl^;^ JR.
AN ACT
EXEMPTING DRUGS AND MEDICINES PRESCRIBED FOR MENTAL HEALTH 
CONDITIONS FROM VALUE-ADDED TAX, AMENDING FOR THE PURPOSE 
SECTION 109 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS 
AMENDED
Be it enacted in the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
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Section 1. Section 109 of the National Internal Revenue Code of 1997, as 
amended, is further amended to read as foilows:
"SEC. 109. Exempt Transactions. —
(1) Subject to provisions of Subsection (2) hereof, the following transactions 
shail be exempt from the value-added tax:
x x x x x
(AA) Sale of drugs and medicines prescribed for diabetes, high cholesterol, 
and hypertension beginning January 1, 2019; [and]
(BB) Sale or lease of goods or properties or the performance of services other 
than the transactions mentioned in the preceding paragraphs, the gross 
annual sales and/or receipts do not exceed the amount of Three Million Pesos 
(P3,000,000.00) AND


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(CC) SALE OF DRUGS AND MEDICINES PRESCRIBED FOR MENTAL
HEALTH CONDITIONS BEGINNING JANUARY 1, 2020.
X X X X X
Sec. 2. Implementing Rules and Regulations. -  Within thirty (30) days from 
the effectivity of this Act, the Secretary of Finance shall, upon the recommendation 
of the Commissioner of Internal Revenue, promulgate the rules and regulations 
necessary for its effective implementation.
Sec. 3. Repealing Clause. -  All laws, rules and regulations, or parts thereof 
that are inconsistent with this Act are hereby repealed, amended, or modified 
accordingly.
Sec. 4. Effectivity Clause. -T h is Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation.
Approved,