Source: Clube Sat - Teresina / PI - NEWS - 02/04/2010

The first report deals with a subject that is not new, but it is very serious because it is an injustice committed long ago against Brazilian citizens.

And it is also serious because this injustice has been denounced many times, without anyone moving to end it.

It costs R $ 77 the medicine that the bank employee Marco Antônio Pereira will take.

Reporter: Do you know how much of this is imposed?
Marco: No
Reporter: R $ 25
Marco: Wow, very expensive, a lot!

For every R $ 3 paid in medicine, R $ 1 is tax, according to the São Paulo Pharmaceutical Industry Union.

"Because it is of the utmost necessity, something that no one can be without, should be the minimum of tax," complained housewife Maria da Glória Veneziano.

Finance professor Fernando Zilveti explains that drug prices include at least 1,65% PIS, 7,60% Confins and an additional 18% on average ICMS.

"If you add that the ICMS has a calculation that we call inside, that amount will be even higher and will tie, reaching 33,9% of the final tax burden, passed on to the product price"

According to a survey carried out in 23 countries, Brazil has the highest tax burden on medicines. In Argentina, taxes reach 21%. In Germany, 16%. In the United States, Mexico, Colombia and the United Kingdom, medicines are exempt.

It is difficult to understand the reason for so much tax when we realize that medicines have more taxes than other products, say, not so vital.

Reporter: What is more essential: stuffed animal or medicine?
Marcos Mendonça, administrative assistant: Remedy, for sure.
- Flowers or medicine?
- Medicine.
- Did you know that the medicine pays more tax than flowers and stuffed animals?
- Did not know. Now that I know.

Manufacturers say that it is possible to change the situation a little in the short term, changing what is levied on ICMS, without having to wait for tax reform.

“If you manage to reduce part of this ICMS, it will go directly to the consumer's pocket. Since 2003, there has been a law that requires that there be a full transfer to the consumer ”, explains Nelson Mussolini, from the São Paulo Pharmaceutical Industry Union.

"You pay more tax on medicine than you pay on a car, thoroughbred horse, diamonds, emeralds, speedboats, it is a real disaster against the Brazilian citizen," shot Sergio Mena Barreto, president of the Brazilian Farmers Association.