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Medicine price should fall 15% in Rio de Janeiro

04/12/2014

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 



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Drugstore in Rio de JaneiroFoto: Fabio Rossi / Reuters Agency
 
RIO - Governor Luiz Fernando Pezão signed on Wednesday decree amending the tax calculation base on Sales and Services (ICMS) of drugs sold in the state. The measure, which begins to assert in January 2015, should contribute to the price of medicines to fall by about 15%.
 
- The target for the next four years is to increase the collection, allowing greater employment generation and income - said the governor. - It is preferable to have a lighter tax burden, allowing raise more and improve the business environment for the entrepreneur.
 
The change is the result of negotiation between the state Department of Finance and the Brazilian Association of Pharmacies and Drugstores Networks (Abrafarma). Based on data from the Brazilian Institute of Economics (IBRE) from FGV, the organization showed that the price of drugs practiced in pharmacies River is below the reference value stipulated by the Health Surveillance Agency (ANVISA), which is the Maximum Price Consumer (PMC). This difference was used to adjust the ICMS tax base of remedies.
 
Under the new system, in the case of branded drugs, the percentage discount on the PMC will rise from 10% to 20%. For generics, the increase will be 10% to 50%. That is, if the maximum price of a generic drug is $ 100, sales tax will be collected about R $ 50 (50% discount on R$ 100). Before, it was under R $ 90 (10% discount on R$ 100).
 
With the adjustment, the Rio de Janeiro Farm reduces by 15% its revenues on brand-name drugs and 85% on generic explained Arthur Scalercio, advisor to the Undersecretary of Revenue:
 
- The selling price in pharmacies is lower than indicated by the PMC. Then the above system was a supertributação. This change should reach the consumer at a reduced price - says.
 
For the CEO of Abrafarma Sergio Mena Barreto, the decree will represent a significant discount especially for medium and small companies in the sector:
- Many companies will buy for a better value and, therefore, may also offer reduced prices to the consumer. On average, the fall in prices should be 15%.
small will be most benefited
 
Present at the signing of the decree, the Guanabara Palace, the businessman Ronaldo José Neves de Carvalho, the group gathers Drugstore Sao Paulo and Drugstore Pacheco, said the change should not result in retail prices fall, as prices in pharmacies are still lower than the new values set by the Treasury.
 
Barreto, Abrafarma mused that the big chains are able to at the same time, buy and sell drugs at lower prices, due to large-scale business. For smaller companies, the adjustment in the calculation basis will reduce retail prices.
At the same ceremony, Bigfoot signed another decree, which also comes into force next year, benefiting bars and restaurants that make up the special tax regime of 2% GST. Demand was led by industry union, SindRio. This group now has a presumed credit of 2.3% of the value of food products used to prepare dishes and subject to tax substitution. In this regime, the ICMS payment is made by a single link in the production chain in general first. Thus, anticipates the payment of the tax by the other.
 
- The decree corrects distortion. It is compensation for bars and restaurants - said Secretary of Finance, Sergio Ruy Barbosa.
 
Are in the dairy package, spices, oils and others. Are ingredients that make up the tax substitution and therefore bought by higher price. The goal is to avoid double taxation, since the establishment already paid 2% GST.


Source: The Globe - Online

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