Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second  Regular Session
+'housE BILL No. 9070
Introduced by REP. RUWEL PETER S. GONZAGA
EXPLANATORY NOTE
lt is the policy of the State to protect and promote the right to health of the people
and instill health consciousness among them. Likewise, 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 people at all cost.
As  mentioned   in  Executive  Order  No.155,   Republic  Act  (RA)   No.  9502  or  the
"Universally   Accessible   Cheaper   and   Quality   Medicines   Act   of   2008,"   declares   the
adoption  of  appropriate  measure  to  promote  and  ensure  access  to  affordable  quality
drugs and  medicines for all.
The  concerted  effort  of  the  Executive  Branch  and  the  Legislative  Branch  of  the
Government in  attempt to  lower the  cost of drugs and  medicines  by the advent of the
Cheaper  Medicine Act and  Administrative  Order 2005-001:  Supplemental  Guidelines to
Administrative Order No.144 series 2004,  entitled; Guidelines for the  Establishment and
Operations of Botika ng  Barangays (BnB) and  Pharmaceutical  Distribution (PDNs) relative
to the inclusion of other drugs which are classified as Prescription Drugs and other related
matters.
By  including  certain  drugs  and  medicines  to  be  fully  exempted  from  the  Value
added  Tax would  mean  the  reduction  of health-related  out-of-pocket  expenses  of our
citizens that somehow result to leading cause of morbidity in the country.
Hence,         the          passage         of         this         bill          is         earnestly         sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
'  HOUSE BILL No. 9070
Introduced by REP. RuWEL PETER GONZAGA
AN ACT
LOWERING THE COST OF PRESCRIPTION DRUGS AND MEDICINES, AMENDING
FOR THE PuRPOSE SECTION  109 0F 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 TI.fle -This Act shall be known as the "Affordable Medicines Act."
SECTION 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) xxx;
"xxx;
"(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.
''PROVJDEO,  THAT  THE  VAT   EXEMPTION   UNDER  THIS  SUBSECTION
SHALL APPLY TO THE SALE OR IMPORTATION OF ALL PRESCRIPTION  DRUGS
AND MEDICINES BEGINNING JANUARY 1, 2024: Prove.bed, fuRTHER, That the
DOH shall issue a list of approved drugs and medicines for this purpose within sixty
(60) days from the effectivity of this Act; and
xxx„


SECTION 3. /mplementing Rules and Regulatfons f7RR/. -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.
SECTION  4. Rapcali.ng 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.
SECTION  5.   Effectjv[.fy. - This Act shall take effect fifteen  (15)  days after its complete
publication in the O#{.c[.o! Gozeffe or in at least two (2) newspapers of general circulation.
Approved,