EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E  
S. No. 5 0 7
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'19 
JUL 16 A8 56
Introduced by Senator PIA S. CAYETANO
AN ACT
EXEMPTING THE IMPORTATION OF CERTAIN MEDICINES FROM CUSTOMS 
DUTY AND VALUE-ADDED TAX
EXPLANATORY NOTE
Our laws recognize the importance of providing accessible and affordable 
quality medicines to our countrymen, most especially the poor. In the Affordable and 
Quality Medicines Act, which the undersigned authored and sponsored, various 
measures were provided to ensure that all Filipinos are given access to affordable 
and quality healthcare. The Tax Reform for Acceleration and Inclusion (TRAIN) Act, 
on the other hand, provides VAT exemption for medicines for diabetes, high 
cholesterol, and hypertension.
Although the latter was a welcome development, it did not provide such relief 
for importers of the abovementioned medicines who are forced to absorb the cost of 
paying VAT. Consequently, the Pharmaceutical and Healthcare Association of the 
Philippines (PHAP) said that they are compelled to deal with this by making 
adjustments, which may include increasing the prices of these medicines.1
This bill seeks to address this problem by exempting medicines for diabetes, 
high cholesterol, and hypertension from customs duty and value-added tax.
1 Charm, N. (n.d.). Medicine importers seeking relief after exclusion from VAT. Retrieved from 
https://www.bworldonline.com/medicine-importers-seeking-relief-after-exclusion-from-vat/


This measure also exempts medicines prescribed for the treatm ent of cancer 
from customs duty and value-added tax, as a complementary measure to the 
National Integrated Cancer Control Act, in order to make cancer care and treatm ent 
more affordable.
In view of the foregoing, the immediate passage of this bill is earnestly
sought.
PIA S. C A W A N O


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
;;70 «  
• o( i.!t ;
S E N A T E
S. No. 507
'19 
JUL 16 A 8 57
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Introduced by Senator PIA S. CAYETANO
AN ACT
EXEMPTING THE IMPORTATION OF CERTAIN MEDICINES FROM CUSTOMS 
DUTY AND VALUE-ADDED TAX
Be it  enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
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Section 1. Short Title. -T h is  Act shall be known as the "Tax-Free Importation
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of Medicines Act".
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Sec. 2. Declaration o f Policy. -  It is declared the policy of the State to protect
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and promote the health of the Filipino people and to adopt appropriate measures to
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promote and ensure access to quality medicines for all.
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Towards this end, the State shall adopt fiscal measures to encourage the
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entry of medicines in the country that are deemed by the State to be essential in its
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delivery of healthcare services to its people.
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Sec. 3. R elief from  Customs D uty and Value-Added Tax on the Im portation o f
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Medicines. -  The importation of medicines prescribed for cancer, diabetes, high
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cholesterol, and hypertension2 are hereby exempt from paying customs duty and
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value-added tax.
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Pursuant thereto, the Department of Health shall provide a list of the specific
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medicines for the above mentioned diseases which will be duty- and tax-exempt.
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Sec. 4. Prior Approval from  the Food and Drug Administration. -  Pursuant to
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Republic Act No. 9711, otherwise known as the "Food and Drug Administration Act
Note; In TRAIN Law, Sec. 109 of NIRC; "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."


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o f 2009", the consignee shall obtain an import permit or clearance from the Food 
and Drug Administration for the imported medicines before relief from customs duty 
and value-added tax can be availed of.
Sec. 5. Separability Clause. -  If for any reason, a provision or part hereof is 
declared invalid, other provisions not affected thereby shall remain in full force and 
effect.
Sec. 6. Repealing Clause. -  Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary 
to or is inconsistent with the provisions of this Act is hereby repealed, modified or 
amended accordingly.
Sec. 7. Effecb'vity. -  This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper o f general circulation.
Approved,