Pharmacists advocate drug tax cuts

By ETCO

Author: Luciamem Winck

Source: Correio do Povo - Porto Alegre / RS - 19/05/2010

Rio Grande do Sul pharmacists are mobilized to defend the reduction of taxes on medicines. The campaign will be launched during the XX Pan American Pharmacy Congress, which will take place in parallel with the XIV Congress of the South American Pharmaceutical Federation, between 26 and 29 May at the PUCRS Events Center.

"It is unacceptable that we have a 33% tax burden embedded in the final cost of medicines," said the president of the Regional Pharmacy Council of Rio Grande do Sul (CRF-RS), Juliano da Rocha, during the launch of the events. According to him, ICMS represents 17% in the composition of taxes. CRF-RS is committed to obtain the reduction or “zero tax”, similar to what occurs in the United States and Germany.

"In Rio Grande do Sul, the tax burden on medicines is higher than that of stuffed animals and automobiles," he compared. On the other hand, he recalled that veterinary drugs are exempt from taxation. "We are going to fight this absurdity", he emphasized. Rocha pointed out that, in Minas Gerais, the ICMS for generic drugs is 12%. According to him, the high taxation on medicines opens the door to piracy and smuggling. “For every R $ 3,00 paid for a medicine, R $ 1,00 is imposed,” he exemplified.

The idea, according to Rocha, is also to mobilize society in order to avoid that taxes continue to represent one third of the final price of pharmaceutical products. CRF-RS also intends to mobilize the other existing councils in the country in order to trigger a national mobilization against the tax burden. "For this reason, we decided to launch the campaign during the two congresses", he stressed.

Source: Luciamem Winck / Correio do Povio