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Ministry Suspends VAT on Essential Medicines Temporarily

Sep 14 , 2025


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The Ministry of Finance (MoF) announced the suspension of value-added tax on certain over-the-counter medicines sold by pharmacies until a legal amendment is finalised. The move follows a request from the Ministry of Health (MoH), which stressed that widely used medicines, including paracetamol, gastrointestinal and respiratory drugs, antimigraine treatments, musculoskeletal medicines, topical anti-infectives, antihistamines, vitamins, folic acid, minerals, and contraceptives, are critical for primary healthcare, child development, and family planning. Under current law, OTC medicines are generally subject to VAT unless prescribed by a doctor. The suspension ensures these essential drugs remain accessible and affordable while the legal framework is updated to formally exempt them from taxation.


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