Decree reduces PIS / COFINS rate for chemical components used in the pharmaceutical industry


Author: Communication Advisory (Ascom)

Source: Federal Revenue of Brazil, 08/04/2008

Decree No. 8 was published in today's DOU (4/6426), which reduces the PIS / COFINS tax rates to zero on revenue from sales on the domestic market and on the import of Synthesis Intermediates used in the manufacture of medicines to zero.

Synthesis Intermediates are products manufactured by means of chemical reactions, normally originated in basic petrochemicals or via biotechnological processes, using raw materials from basic organic chemistry. It is from Synthesis Intermediates that drugs are produced (active ingredients used in the manufacture of medicines).

The measure allows the pharmaceutical industry, established in the country, to reduce the costs incurred in the production of drugs, with reflexes in the reduction of prices to the consumer. Consequently, the entire drug production chain benefits.

The drugs originate drugs indicated in pathologies such as AIDS, Alzheimer's, diabetes, among others. 225 Synthesis Intermediaries were contemplated, which greatly benefit the population.