Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
EXPLANATORY NOTE 
No less than the Constitution provides that The State shall protect and promote the right 
to health of the people and instill health consciousness among them. The State shall also 
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. 
This proposed amendment to Section 109 of the National Internal Revenue Code of 1997 
holds significant importance. It aims to reduce the financial burden on individuals dealing 
with critical health conditions. Exempting prescription drugs and medicines from value-
added tax (VAT) implies a reduction in their overall cost, making them more affordable 
and accessible for patients. Health conditions such as diabetes, high cholesterol, cancer, 
mental illness, tuberculosis, and kidney diseases often necessitate ongoing medication, 
and the cost can be a significant challenge for individuals and families. This amendment 
helps alleviate this financial strain, promoting better health outcomes and improving the 
overall quality of life for patients.  
The objective of this amendment is to alleviate the financial burden on individuals facing 
serious health challenges by reducing the costs associated with prescription drugs and 
medicines. By exempting these essential healthcare items from VAT, the proposal aims 
to make them more accessible and affordable for patients. 
Overall, the amendment aims to contribute to a more equitable healthcare system by 
enhancing access to essential medications for individuals dealing with serious health 
conditions. 
On behalf of the people of Parañaque City’s Second District, and for the common good 
of the Filipino people, the approval of the said measure is earnestly sought. 
October 9, 2023
9:47 am
9393


REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 9393
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
LOWERING THE COST OF PRESCRIPTION DRUGS AND MEDICINES, 
AMENDING FOR THE PURPOSE SECTION 109 OF THE NATIONAL INTERNAL 
REVENUE CODE OF 1997, AS AMENDED  
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 the “Affordable Medicines Act.” 
Sec. 2. – Section 109 of the National Internal Revenue Code of 1997, as amended, is 
hereby 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: 
“(A) x x x; 
“x x x; 
“(AA) Sale of or importation of prescription drugs and medicines for: 
“(i) Diabetes, high cholesterol, and hypertension beginning January 1, 2020; and  
“(ii) Cancer, mental illness, tuberculosis, and kidney diseases beginning January 1, 
2021. 
“PROVIDED, THAT THE VAT EXEMPTION UNDER THIS SUBSECTION 
SHALL APPLY TO THE SALE OR IMPORTATION OF ALL PRESCRIPTION DRUGS 
AND MEDICINES BEGINNING JANUARY 1, 2024; Provided, FURTHER, That the 
DOH shall issue the list of approved drugs and medicines for this purpose within sixty 
(60) days from the effectivity of this Act; and
“x x x”
Sec. 3. Implementing Rules and Regulations. – Within thirty (30) days from the effectivity 
of this Act, the Secretary of Health and the Secretary of Finance, upon the 


recommendation of the Commissioner of Internal Revenue, shall promulgate the 
necessary rules and regulations for its effective implementation. 
Sec. 4. Repealing Clause. – All laws, acts, decrees, executive orders, issuances, and rules 
and regulations or parts thereof which are contrary to and inconsistent with this Act are 
hereby repealed, amended, or modified accordingly. 
Sec 5. Effectivity. – This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,