FOURTEENTH CONGRESS OF THE 
Second Regular Session 
REPUBLIC OF THE PHILIPPINES 
1 
INTRODUCED BY HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
The passage of Republic Act No. 9502, otherwise known as the “UniverSay 
Accessible Cheaper and Quality Meacines Act of 2008,” intends to bring down the cost of 
essential drugs and medicines in our country. However, additional measures must be 
undertaken by the government to accelerate and further improve the access to quality and 
affordable health care for our people. 
Presently, majority of the players in the pharmaceutical industry in the Philippines 
do not produce active substances. Basic raw materials are imported from chemical producers 
and are manufactured locally into finished pharmaceutical products. 
Just like their 
counterparts abroad, pharmaceutical companies in the Philippines import active substances, 
semi-finished products and other auxiliary materials with the exception of three antibiotics - 
ampicili, amoxyCUin and cloxacilllin. Government imposes 3% to 5% import duties on 
most of these raw materials and 12% VAT on the sales thereof. Medical equipment on the 
other hand is 100% imported and therefore, also subject to such import duties and taxes. This 
translates to the cast of specialized medical examination and treatments like dialysis, 
magnetic resonance imaging (MRI), chemotherapy and CT-Scan being priced far beyond the 
reach of the ordinary Filipino. 
Tariffs and Value-Added Tax (VAT) on medicines and medical equipment are highly 
regressive and burdens the poorest and most vulnerable sectors of our society. Removing the 
tariffs and VAT that keep essential medicines and medical equipment out of the hands of the 
poorest of the poor should therefore be a priority for the government. 
This bill, thus, seeks to further reduce the cost of health care in the country and to 
make medicines and medical equipment more affordable by exempting them from the 
coverage of the Value-Added Tax (VAT) and imposition of import duties. 
With the 
elimination of these duties and taxes, the costs of goods directly related to health care will be 
lowered and the manufacturers and distributors can then pass on the benefit to the Filipino 
consumer and eventually translate into a lower cost of health care for all Filipinos. 
In view of the foregoing, approval of this bill is earnestly sought. 


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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
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S E N A T E  
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INTRODUCED BY HONORABLE MAR R O U S  
AN ACT 
LOWERING THE COST OF HEALTH CARE IN THE PHILIPPINES, EXEMPTING FOR 
THE PURPOSE THE SALE AND IMPORTATION OF DRUGS, MEDICINES, 
PHARMACEUTICAL PRODUCTS AND RELATED RAW MATERIALS, AND MEDICAL, 
DENTAL AND HOSPITAL EQUIPMENT AND INSTRUMENTS, FROM COVERAGE OF 
OTHER PURPOSES. 
VALUE-ADDED TAX (VAT) AND THE IMPOSITION OF TARIFF AND DUTIES AND FOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Coverage. - This Act shall apply to the sale and importation of drugs, 
medicines, pharmaceutical products and related raw materials and medical, dental and 
hospital equipment and instruments. 
SEC. 2. Exemption fiom Value-Added Tax (VAT) -Section 109 of Republic Act No. 
8424, otherwise known as the National Internal Revenue Code of 1997, as amended by 
Republic Act No. 9337, is hereby further amended to read as follows: 
SEC. 109. Exempt Transactions - Subject to the provisions of 
subsection (2) hereof, the following transactions shall be exempt from value- 
added tax: 
xxx 
(W) 
SALE 
OR 
IMPORTATION OF 
DRUGS, 
MEDICINES, 
PHARMACEUTICAL PRODUCTS AND RELATED RAW 
- 1 -  


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MATERIALS, AND ME~$I&L, DENTAL AND HOSPITAL 
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EQUIPMENT AND INSTRUMENTS. 
SEC. 3. Exemption from Tariff and Duties. - The importation of drugs, medicines, 
pharmaceutical products and related raw materials and medical, dental and hospital 
equipment and instruments shall be exempted from tariff and duties; Provided, That the 
importation of said articles shall be accompanied by a certificate of eligibility or accreditation 
duly issued by the appropriate bureaus of the Department of Health such as the Bureau of 
Food and Drugs (BFAD) and the Bureau of Health Devices and Technology (BHDT). 
SEC. 4. Implementing Rules and Regulations. - The Secretary of Finance, upon 
recommendation of the Commissioners of Internal Revenue and the Tariff Commission, 
respectively, shall within sixty (60) days from the effectivity of this Act promulgate the 
necessary rules and regulations for the effective implementation of the provisions of this Act. 
Penal Clause. -Any public official or employee or private individual who 
SEC. 5. 
willfully or knowingly or otherwise, refuses or fails to implement this Act shall be punished 
with perpetual disqualification from public office and imprisonment of not less than six (6) 
years but not more than fifteen (15) years. 
SEC. 6. Separability Clause - If any provision of this Act is declared unconstitutional 
or invalid, the professions not affected thereby shall continue to be in full force and effect, 
SEC. 7. Repealing Clause - All laws, decrees orders, rules and regulations or other 
issuance inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SEC. 8. Effectivity Clause - This Act shall take effect fifteen (15) days after its 
publication in two (2) national newspapers of general circulation. 
Approved, 
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