That's a very good question... according to the Irish Pharmacy Union, based on their discussions with Revenue, it is.
"Newsletter dated 14 January and item 3d in the General Memorandum dated 1 February, Revenue advised that the prescription levy was not allowed on Med1 forms. This advice was incorrect. The IPU has clarified the matter with both the Department of Health (DoH) and the Revenue. The
DoH has now clarified that, ‘the Revenue Commissioners have confirmed that there has been no change in the position with respect to the treatment of the prescription charge since its introduction in 2010. i.e. the prescription charge is considered as an outlay on prescribed drugs and medicines and as such is regarded as
qualifying expenditure under Section 469(d) of the Taxes Consolidation Act 1997. ’ Therefore, the prescription levy continues to be allowed on the Med1 form."
[broken link removed]