EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
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S E N A T E
Senate Bill No. _ 258
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'19 JUL-8 P2:18
RECEIVE') B ,
Introduced by Senator FRANCIS N. PANGILINAN
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
With the passage of Republic Act No. 11036, otherwise known as the "Mental 
Health Act", the basic right of all Filipinos to mental health and the fundamental rights 
of people who require mental health services were affirmed. While it seeks to provide 
timely, affordable, and high-quality mental health care to the public, the Mental Health 
Act does not cover the cost of drugs and medicines prescribed for mental health 
conditions.
According to the Philippine Statistics Authority (PSA), mental health conditions 
are the third most common forms of disease for Filipinos - 14% of all diseases. In this 
connection, the PSA reports that between 17 to 20% of Filipino adults and between 10 to 
15% of Filipino children suffer from mental health conditions. Considering that almost 
one out of five Filipinos have mental health conditions, the cost of drugs and medicines 
prescribed for mental health conditions remain to be high. In a 2007 World Health 
Organization (WHO) study, the cost of antipsychotic medication is 0.46% and of 
antidepressant medication is 11.14% of the minimum daily wage. 
Further, the 
Philippine Health Insurance Corporation does not cover the cost of drugs and 
medicines prescribed for mental health conditions.
In order to make drugs and medicine prescribed for mental health conditions 
more affordable, this bill proposes to exempt these drugs and medicines from value- 
added tax. A version of this measure was filed by Senator Pimentel in the 17th Congress.
In view of the foregoing, the passage of this bill is earnestly sought.
FRANCISaN>RANGILINAN


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
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. 'uDffirr of J r i' ; r
*19 JUL-8 P2:18
Senate Bill No.
Introduced by Senator FRANCIS N. PANGILINAN
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 by the Senate and the House of Representatwes of the Philippmes in Congress 
assembled:
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SECTION 1. Section 109 of the National Internal Revenue Code of 1997, as
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amended, is further amended to read as follows;
"SEC. 109. Exempt Transactions.-
(1) Subject to the provisions of Subsection (2) hereof, the following 
transactions shall be exempt from the value added tax:
XXX
(AA) Sale of drugs and medicines prescribed for diabetes, high cholesterol, 
and hypertension beginning January 1, 2019; [and]
(BB) SALE OF DRUGS AND MEDICINES PRESCRIBED FOR 
MENTAL HEALTH CONDITIONS, AS DEFINED IN REPUBLIC ACT NO. 
11036, OTHERWISE KNOWN AS THE "MENTAL HEALTH ACT", 
BEGINNING JANUARY 1, 2020; AND
(CC) 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 (Php 3,000,000.00)."


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SEC. 2. Implementing Rules and Regulations. - Within thirty (30) days from the
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effectivity of this Act, the Secretary of Finance shall, upon the recommendation of the
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Commissioner of the Bureau of Internal Revenue (BIR), promulgate the necessary rules 
and regulations for the effective implementation of the provisions of this Act.
SEC. 3. Repealing Clause. - All laws, rules and regulations, decrees, proclamations, 
issuances, ordinances that are contrary to or inconsistent with the provisions of this Act
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are hereby amended, repealed, or modified accordingly.
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SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
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complete publication in the Official Gazette or in at least two (2) newspapers of general 
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circulation.
Approved,
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