Interfax-Ukraine
12:14 16.07.2015

Exemption of drugs from imports duty under list approved by cabinet creates preconditions for corruption - EBA

2 min read

The cabinet-proposed exemption of drugs from an additional imports duty under a list approved by the Ukrainian government creates preconditions for corruption, the European Business Association (EBA) has said.

Commenting on draft law No. 2325a which was drawn up by the Finance Ministry foreseeing the extension of a list of vitally important goods exempted from imports duty, with technical devices for rehabilitation of disabled people and people with other conditions, apart from vehicles, and drugs under a list approved by the cabinet, EBA experts said that the selective exemption of drugs from imports duty would contain elements of corruption.

"There is no more complicated task that to decide what drug is considered more vitally important, what patient needs drugs and what patient could wait or pay the larger end price. It is unlikely appropriate to set this task for lawmakers when drugs are paid by Ukrainians without the help of the state," the EBA said.

The EBA expressed hope that the "list" implies the state register of drugs.

"If this is true, then the equal approach will apply to all drugs, without exceptions. This would be in line with the decision of the main public official of executive power branch – Ukrainian Prime Minister Arseniy Yatseniuk," EBA said.

The association said that the introduction of imports duty has affected the end price of both imported drugs and Ukrainian-made drugs.

"Pharmaceutical society puts special hopes on draft law No. 2325a, as the price minister on March 24, 2015 ordered the Finance Ministry to draw up a draft law on exemption of all registered drugs from paying the additional imports duty. However, worries and tension on the market remains. The amendments again say that not all drugs will be exempted from the imports duty, but only from the list approved by the cabinet. EBA calls to use transparency in deciding on exempting all registered drugs from imports duty," the association said.

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