Research shows that ICMS is the tax that weighs most on medicines

By ETCO

Source: Monitor Mercantil - RJ - 27/07/2009

A study by the Brazilian Institute of Tax Planning (IBPT) points out that the medicines consumed in Brazil have an average tax burden of 35,7%.

Of this total, the ICMS is the most important, with an average rate of 17,5%. Medicines for animal use have a tax burden of only 14,3%. The document also shows that the highest rate is that charged in Rio, which reaches 19%. In São Paulo the rate is 18% and most states charge 17%.

This is one of the themes that will be debated at Expo Pharma 2009, which will take place between the 18th and 21st of August in Riocentro, West Zone of Rio. Unlike Brazil, other countries for many years have considered the medicine an essential asset. In the USA, Mexico, England and Japan the tax is zero. In Portugal it is 4,7%; in France, 2,1%; in Italy, 3,9% and in Spain, 3,8% - just to name a few examples. On veterinary drugs, treated as inputs, ICMS is not collected, that is, there is 15% less tax.

The pharmaceutical sector has long pointed to tax cuts as a way to increase the population's access to healthcare. And in August, another step will be taken with the realization of the Expo Pharma 2009 Panel, which will bring together representatives of the segment and authorities for a broad debate that will result in a document to be forwarded to the Executive Branch. Cases like Paraná and Pernambuco, which came out ahead, will be used as an example that it is possible to change.

Expo Pharma will also receive the president of Anvisa, Dirceu Raposo de Melo, who will talk about combating counterfeit medicines, bringing up the current panorama of this serious problem. Marcelo Bernardes