Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. ___________ 
INTRODUCED BY REP. JOSE “BONG” J. TEVES, JR. 
EXPLANATORY NOTE
According to a report by the Department of Health in 2019, ninety-nine percent (99%) 
of Filipinos cannot afford to buy prescription medicines because they are expensive. In the 
same report, it highlighted that in the Philippines, prices of branded and generic medicines are 
22 times and 4 times more expensive respectively compared to other countries.1 Also, a report 
by Mercer Marsh Benefits in 2019 showed that the Philippines is ranked second in terms of 
medicine prices in South East Asia with an increase of 13.7%.2 Completing the top five (5) 
ASEAN countries with expensive medicines are: (1) Vietnam, (2) Philippines, (3) Malaysia, 
(4) Indonesia, and (5) China.
To address the said issue, in 2020, former President Duterte signed Executive Order 
104 which provides for a price control to at least 86 drug molecules or 133 drug formulas. 
Unfortunately, given the rising cost of living today and the inflation rate, a price control on 
medicines still cannot make it affordable to an ordinary Filipino. The government should 
ensure that health care should be the priority for every Filipinos as it is provided for under our 
Constitution.  
1 https://www.philstar.com/headlines/2019/12/07/1974968/99-pinoys-cant-buy-expensive-meds 
2 https://www.marshmclennan.com/content/dam/mmc-
web/insights/publications/2019/jun/MMB_Medical_Trends_Survery_Final.pdf 
July 3, 2023
8:00 am
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One of the reasons for high prices of medicines, whether it be generic or branded, is the 
Value-Added Tax (VAT) which is automatically added over and above the base prices. As an 
indirect tax, VAT may be passed on by the seller to the buyer. At present, the Filipino people, 
being the end-person consumer of the medicines, has the burden of paying the VAT every time 
they purchase medicines. With the ultimate goal of providing affordable generic and branded 
medicines to the public, this measure seeks to exempt consumers of generic and branded drugs 
or medicines from the payment of VAT. In lieu of this, the burden of paying such tax shall be 
the manufacturer, distributor, or seller of such medicine. This will help the Filipino people who 
are suffering from illnesses to be able to afford generic and branded medicines. This is in 
consonance with this representation’s main advocacy which is to provide cheaper medicines to 
our fellow Filipino people, especially those who cannot afford medicines for their illnesses.  
 
 
This is in consonance to Article II, Section 15 of the 1987 Constitution which provides: 
“The State shall protect and promote the right to health of the people and instill health 
consciousness among them.” To add, Article XIII, Section 11 of the same Constitution 
provides: “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.” 
 
In view of the foregoing, the passage of this bill is earnestly sought. 
 
 
 
 
 
 
 
 
 
 
HON. JOSE “BONG” J. TEVES, JR. 
 
 
 
 
 
 
 
Deputy Majority Leader 
 
 
 
 
 
 
 
Representative, TGP Party-List 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
House Bill No. ___________ 
INTRODUCED BY REP. JOSE “BONG” J. TEVES, JR. 
AN ACT 
GRANTING EXEMPTION OF GENERIC AND BRANDED MEDICINES FROM 
VALUE-ADDED TAX (VAT) 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:  
SECTION 1. Short Title. – This Act shall be known as “Mas Murang Gamot Para sa 
Pilipino Act of 2023”.  
SECTION 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. 
SECTION 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.  
 
SECTION 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.  
 
SECTION 5. Burden of Paying VAT. – Given the exemption stated under Section 4 
of this Act, the burden of paying the VAT shall be shifted to the manufacturers, distributors, or 
sellers, of generic and branded medicines. 
 
SECTION 6. Repealing Clause. – All laws, decrees, executive orders, and other 
presidential issuances which are inconsistent with this Act are hereby repealed, amended or 
modified accordingly.  
 
SECTION 7. 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.  
 
SECTION 8. 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,