THE expansion of value-added tax (VAT) exemptions on medicine is expected to improve drug affordability and support the growth of the pharmaceutical industry, according to BMI, a unit of Fitch Solutions, as reported by BusinessWorld .
The Bureau of Internal Revenue’s recently expanded list of VAT-exempt medicines for serious and chronic illnesses brought the total number of exempt products to 2,263. This move is seen as a positive step toward making essential medications more accessible to patients, particularly those with long-term conditions.
BMI noted that the policy change could stimulate growth in the pharmaceutical sector by reducing costs for consumers and potentially increasing demand. The broader implications include a healthier population and reduced financial burden on healthcare systems, aligning with government efforts to improve public health outcomes.