10:29 04.12.2015

VAT increase to 20% to make medicines unaffordable - PPAU

2 min read
VAT increase to 20% to make medicines unaffordable - PPAU

Representatives of the Pharmacy Professional Association of Ukraine (PPAU) have sent a letter to the Finance Ministry, Health Ministry, Cabinet of Ministers and the parliamentary committee for healthcare regarding the increase of value added tax (VAT) on medicines and medical products to 20%, asking to revise the initiative that could make unaffordable life-saving goods unaffordable for the major part of the population.

According to the letter, the adoption of the bill on preventing the financial catastrophe and creating the preconditions for economic growth in Ukraine on March 27, 2014 that introduced 7% VAT on supplies of medicines and medical products has already resulted in the sharp increase in their prices and affected only end consumers.

The Finance Ministry also initiated the revoking of benefits for some types of businesses.

"Today the state is again trying to improve the country's balance of payment at the expense of patients. The statement that benefits are revoked for some types of businesses has no grounds and it only confuses, as benefits were given to consumers, not businesses," the association said.

Pharmacies say that "patients need medicines today, and tomorrow they could have no need in them. Patients cannot wait when the state introduces the new project on the creation of an ad hoc fund, which allegedly would stock funds received from VAT paid for pharmaceutical products and which could never start operating."

Association members ask Ukrainian authorities to find other ways that would not do harm to people's health, making medicines unaffordable.

"The increase in the prices of medicines for the public would not help stabilizing the economic situation in the state and would not improve Ukraine's international image," the association said.

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