Dear Hon. Recto:

This refers to your email dated 13 March 2017 regarding the letter from Mr. Emiliano M. Manahan, Jr., on the refusal of Mercury Drug Inc. to honor the implementation of the RA 10754 otherwise known as the “Act Expanding the benefits and Privileges of Persons with Disability (PWD) and the Execution of its Implementing Rules and Regulations”.

The Department of Health (DOH) already communicated with the management of Mercury Drug Inc. asking them to explain why the twelve percent 12% VAT exemption is still not being given to the PWDs.

On February 5, 2017, Mercury Drug Inc. sent an explanation letter to the DOH citing lack of guidelines from the Department of Health (DOH), Philippine Health Insurance Corporation (PHIC) and the Food and Drugs Administration (FDA), as the reason why it is still unable to give the Value Added Tax (VAT) exemption to the PWDs.

In response, the Department of Health issued another letter dated February 21, 2017 emphasizing that the absence of guidelines cannot, and should not impede the full implementation of RA 10754, specifically the provision on VAT exemption.

On March 8, 2017, Mercury Drug Corporation started to give VAT exemption on the purchase of medicines for all PWDs.

The DOH already coordinated with Mr. Manahan and updated him on the development of the implementation of R.A. 10754.

As of this time, the Department of Health has not received any complaints against drugstore chains and other commercial establishments with regards to the implementation of R.A. 10754.

Thank you.

Very truly yours,

PAULYN JEAN B. ROSELL-UBIAL, MD, MPH, CESO II
Secretary of Health