Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.34 pa

Introduced by
BAYAN MUNA Party-List Representatives CARLOS ISAGANI T. ZARATE,
FERDINAND R. GAITE and EUFEMIA C. CULLAMAT

AN ACT
CLASSIFYING THE SALE AND IMPORTATION OF DRUGS AND MEDICINES
PRESCRIBED FOR MENTAL DISORDERS THEREOF AS VALUE-ADDED TAX
EXEMPT TRANSACTIONS, AMENDING FOR THE PURPOSE SECTION 109 (1)
OF REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE TAX REFORM ACT
OF 1997, AS AMENDED BY REPUBLIC ACT NO. 9337, AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

This Bill secks to lessen the burden of the people suffering from mental disorder by making
medicines for mental disorder more affordable through exempting the sales and importation
thereof from value-added tax (VAT).

Article XIII, Section 11 of the 1987 Constitution mandates that 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, eldesly, disabled, women, and
children. ‘The State shall endeavor to provide free medical care to paupers.”

The World Health Organization (WHO) defines health a state of complete physical, mental and
social well-being. An individual’s mental well-being is often unnoticed and neglected as it is not
Physically visible. The mere absence of disease or infirmity does not necessarily mean the person
is healthy. One of these “invisible disorders” which are often unrecognized and neglected are
‘mental health disorders.

In 2001, 40% of the countries have no mental health policy, over 30% have no mental health
Programme and around 25% of countries have no mental health legislation. Moreover, about


25% of countries do not have the three most commonly prescribed drugs used to treat
schizophrenia, depression and epilepsy at the primary health care level. ‘There is only one
Psychiatrist per 100 000 people in over half the countries in the world, and 40% of countries
have less than one hospital bed reserved for mental disorders per 10,000 people.!

In the Philippines, the Department of Health (DOH) reported that in 2004, there are 4.5 million
recorded cases of depression. The department also noted that the number is likely to be much
higher. In 2012, DOH Assistant Secretary Paulyn Jean Rosell-Ubial said that only one-third of
depressed people in the country seck professional help?

According to Philippine Health Information System on Mental Health (PHIS-MH), comprising
information from 2,562 patients who consulted 14 participating public and private hospitals
from May 8, 2014, to May 6, 2015, reported that schizophrenia is the top brain disorder affecting
mentally ill patients who seck consultation and treatment. Other common mental health
disorders are major depressive disorder, panic attacks(anxiety), post-traumatic stress disorder
(PTSD) — anxiety, bipolar disorder, drug addiction and sleep disorders, such as insomnia.’

The official statement of the DOH on January 17, 2019 expressing condolences to the family
and friends of a suicide victim, it recognizes the seriousness of depression as a health condition,
It cited the data from a study conducted by Global Burden of Disease in 2015 that there are 3.3
million Filipinos who are suffering from depressive disorders, with suicide rates of 2.5 males and
1.7 females per 100,000 people.

Whereas, it is only on June 20, 2018, wherein a law for mental health was legislated. President
Rodrigo Duterte signed the Republic Act 11036 or “Mental Health Act” which affirms the basic
‘ight of all Filipinos to mental health and the fundamental right of people who require mental
health services.

According to the Drug Price Reference Index (DPRI), medicines and drugs for mental disorders
can go as high as P1,750.

MEDICINE/DRUG DPRI
Alprazolam 250 mcg Tablet 4.45
Alprazolam 500 meg Tablet 79
Aripiprazole 10 mg Orally Disintegrating Tablet 209.68
Carbamazepine 200 mg Tablet 1.73
Chlorpromazine 100 mg Tablet 15
Chlorpromazine 200 mg Tablet 2.12
Clozapine 100 mg Tablet 8

* World Health Organization, Mental disorder affect one in four people, 2001,
https://www.who.int/whr/2001/media_centre/press_release/en/

°F. Panela, PHL one of the least happy countries in Asia, global study shows, 2012,
/https://www.gmanetwork.com/news/scitech/science/277743/phl-one-of-the-least-happy-countries-in-asia-
global-study-shows/story/

*R.J.F. Octaviano, mental disorders, 2016, https://www.sunstar.com.ph/article/48586


Diazepam 5 mg Tablet 6.89
Diazepam 5 mg/ml, 2 mL Ampule 61.51
Donepezil Hydrochloride 5 mg Tablet 16.88
Escitalopram (as Oxalate) 10 mg Tablet 442
Fluoxetine 20mg capsule 5.35
Flupentixol 20 mg/ml, 1 mL Ampule 364.5
Fluphenazine (as Decanoate) 25 mg/mL, 10 ml Vial 472.04
Haloperidol 5 mg Tablet 3.45
Haloperidol 5 mg/ml, 1 mL Ampule 665
Lithium Carbonate 450 mg MR Tablet 44
Olanzapine 10 mg Tablet 9.98
Olanzapine 10 mg Tablet 9.98
Quetiapine (as Fumarate) 100 mg Tablet 84.94
Quetiapine (as Fumarate) 200 mg Tablet 29.21
Quetiapine (as Fumarate) 25 mg Tablet 20.42
Quetiapine (as Fumarate) 300 mg Tablet 54
Risperidone 1 mg Tablet 2
Risperidone 2 mg Orodispersible tab 45.9
Risperidone 2 mg Tablet 5
Risperidone 4 mg Tablet 10.5
Sertraline 50 mg Tablet 68
Valproate Disodium/Valproic Acid 250 mg Tablet 23.87
Valproic Acid + Sodium Valproate 500 mg MR Tablet 40
Valproic Acid 250 mg/S ml, 120 ml Syrup 441.23
Valproic Acid 500 mg/S ml, 5 mL Vial 1751.87
Zolpidem 10 mg Tablet 64
Acetazolamide 250 mg Tablet 20
Gabapentin 300 mg Capsule 8.13,
Gabapentin 100 mg Capsule 7
Lamotrigine 50 mg Tablet 19
Lamotrigine 100 mg Tablet 25
Phenobarbital 30 mg Tablet 3.93
Phenobarbital 60 mg Tablet 4.76
Phenobarbital 120 mg/mL (130 mg/mL), 1mLAmpule | 475.52
Phenobarbital 90 mg Tablet 9.75
Phenytoin 50 mg/ml, 2 mL Ampule 95.11
Phenytoin 100 mg Capsule 10.14
Phenytoin 30 mg/5 mL, 120 mL Suspension 142.98
Phenytoin 50 mg/ml, 5 mL Ampule 670.67
Topiramate 50 mg Tablet 11.05
Verapamil 80 mg Tablet 30.25
Verapamil 2.5mg/ml, 2mL Ampule 137.59
Verapamil 240 mg MR Tablet 20.09



Article VI, Section 28 (1) of the 1987 Constitution mandates that the rule of taxation shall be
uniform and equitable, and the Congress shall evolve Progressive system of taxation,
Imposition of VAT, on the other hand, is not a progressive fom, of taxation because the amount
OF VAT everyone pays, whether you are rch or poor is the same As a temporary measure, this

wor SS RCR Ae

Bayan Muna Park-List

Rep, INAND R. GAITE,

Bayan Muna Party Lit
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Rep. EUFEMIA C. CULLAMAT

Bayan Muna Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 3454

Introduced by
BAYAN MUNA Party-List Representatives FERDINAND R. GAITE,
CARLOS ISAGANI T. ZARATE and EUFEMIA C. CULLAMAT

PURPOSES

‘Beit enacted by the Senate and House of Representatives Of the Philippines in Congress assembled:

SECTION 1. Section 109 (), Chapter 1, Title IV, Value-Added ‘Tax of Republic Act No, 8424,
otherwise known as the ‘Tax Reform Act of 1997, as amended by Republic Act No. 9337, 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 tan

“(A) xxx
“(@B) xxx

After paragraph (G), insert the following paragraphs (F ).

“(H) SALE OR IMPORTATION OF DRUGS AND MEDICINES PRESCRIBED FOR
MENTAL DISORDERS;

And re-letter the succeeding paragraphs as from (I) to ™.


SECTION 3. Repealing Clause. — All laws, acts, decrees, executive orders, issuances, and rules
hid regulations or parts thereof which are contrary to and inconsistent with any provisions of
this Act are hereby repealed, amended or modified accordingly.

SECTION 4. Separability Clause. — Tf any provision of this Act is subsequently declared
Unconstitutional, the validity of the remaining provisions hercof shall remain in full foree andl
effect.

SECTION 5. Effectivity Clause. - This Act shall take effect immediately after its complete
Publication either in the Official Gazette or in a ‘newspaper of general circulation in the