Drug tax reduction is discussed in Rio

By ETCO

Source: JB Online - RJ - 18/08/2009

RIO - A study by the Brazilian Institute of Tax Planning 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%. As a comparison, 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%.

Unlike Brazil, other countries have for many years considered the drug 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 are 15% less taxes. The pharmaceutical sector has long pointed to tax cuts as a way to increase the population's access to healthcare. And in August, one more 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 wide 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 speak about combating counterfeit medicines, bringing up the current panorama of this serious problem.