Kyiv, July 25 (Interfax-Ukraine) – The operators of the healthcare products market are alarmed at the possible introduction of 20% value added tax (VAT) on imports and supply of these products, which will result in the increase in the prices of healthcare products and the disappearance of its most innovation segment from the Ukrainian market, Vice President of the Market Operators of Healthcare products Association and partner of Legal Alliance law firm Dmytro Aleshko said at a press conference at Interfax-Ukraine on Thursday.

"We learned the results of the yesterday's cabinet meeting, at which the finance minister said that the resolution on the introduction of 7% VAT on healthcare products are not in line with European practice and proposed to the cabinet to cancel it. The cabinet canceled the resolution on the introduction of 7% VAT on healthcare products. Actually from that moment when the resolution is published in official media, automatically VAT on all healthcare products on the territory of Ukraine, including those importing to Ukraine, will total 20%," he said.

President of the Market Operators of Healthcare products Association and Director of Kalina Business Development Company LLC Pavlo Kharchyk said that the preparation of a decision to introduce 20% VAT on healthcare products explains the problems the operators faced during the customs clearance of healthcare products from July 1.

"Customs officers refused to carry out custom clearance at 7% rate, referring to the fact that they do not have explanations. Now it is clear to everyone that this was no the collision in law: resolution No. 216 on the introduction of 7% VAT on all healthcare products was well written and clear. We came to the customs service and they told us that they cannot carry out customs clearance until they receive a personal order," he said.

Sales and Marketing Director of the medicine and dentistry division of 3M Ukraine, Leonid Zhukotsky, said that almost three weeks trucks with cargo were staying and nothing was done with customs clearance as the customs service proposed carrying out customs clearance with payment of 20% VAT.

In turn, editor-in-chief of Svitmam.ua online portal Tetiana Kur said that thanks to changes to taxes on healthcare products, which the country urgently needs today, we'll be left not only without diapers and napkins, which are goods of first priority for young mothers, but also without bandages, which are needed in the counterterrorist operation zone and for rear services for wounded soldiers and people.

"Any taxes are to be introduced next year, but we actually have the third case when during one year the tax rate is changed for the third time. Why is the requirement of Ukrainian law violated so obviously?" said the head of the law department of Kimberly Clark Inna Kosianiuk.

Strategic Development Director of a representative office of Johnson & Johnson Oleksandr Tsymbalisty said that the possible introduction of 20% VAT on healthcare products could create problems during state procurement.

"There will a problem for state procurement if now the tender taking into account 7% VAT was announced and the sale will include 20% VAT," he said.

As reported, from July 1, 2014, operators of the healthcare products market several times asked the stet authorities and various agencies to quickly react to the actions of the customs service which actually resulted in the stop of imports of healthcare products to Ukraine.