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Consumer News

Prices of drugs may drop to 9% reduction in ICMS

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

 
 


SAO PAULO - The government and the pharmaceutical industry resumed negotiations on the reduction of taxes on medicines. The main target is the Tax on Circulation of Goods and Services (ICMS). Among the proposals is to reduce the current average rate of 17.5% to 12% or so for around 6%. In the first case, the prices of medicines for consumer could fall almost 9%.

The goal is to increase the supply of medicines to the population through lower prices, reduce the costs of treatment and combat tax evasion.

Technical Meetings
On Thursday, the Executive Group of the Industrial Health (Gecis), which brings together several ministries and is coordinated for Health, will meet to look at strategies to convince the states about the need to reduce the burden of taxes. On day 6, a representative of the group was in the Brazilian Federation of Pharmaceutical Industry (Febrafarma) to analyze numbers and discuss the proposal.

- The tax burden on drugs in Brazil is outrageous. Heavily taxed goods for the health of people - said Ciro Mortella, president of Febrafarma.

A study by the Brazilian Institute of Tax Planning (BIPT) revealed that the drugs have an average tax burden of 35.7%. Of this total, sales tax is what weighs more, with average rate of 17.5%. Drugs for animal use, for example, have taxation only 14.3%. Most ICMS is charged in Rio (as much as 19%). In Sao Paulo, is 18%. Most states charge 17%.

 
 


Source: Journal Extra

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

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