In Azerbaijan, the exemption from value added tax (VAT) for medicines used in the treatment of chronic and rare diseases is being debated. According to information provided to the press by the State Tax Service under the Ministry of Economy, the General Department of Fiscal Policy of the institution held a meeting with representatives of companies operating in the pharmaceutical sector and representatives of the “Azerbaijan Association of Pharmacists”, Public Union that represents this sector. Representatives of relevant functional structures of the service participated in the meeting, improving VAT administration of entrepreneurs, possibilities of VAT exemptions or differential VAT in relation to medicines used in the sector. pharmaceutical field, especially in the treatment of chronic and rare diseases, difficulties The problems arising in relation to tax administration, the positive impact on the development of the application in the field of existing mechanisms in international practice and other topics were discussed. .
I wonder if the price of these drugs will decrease if the decision is made.
“Caspian” This and other issues are clarified in the following newspaper article.
The head of the Association of Pharmaceutical Entrepreneurs of Azerbaijan, Azer Khudiyev, said in his statement to the newspaper “Kaspi” that after conducting research on the regulation of taxes and customs duties on pharmaceutical products in neighboring countries, they proposed this project: “For example, in neighboring Georgia no fees are charged for pharmaceutical products. Some taxes are regulated differently in countries. We made proposals to meet the medicinal needs of Azerbaijani citizens without causing great damage to the state budget and “We request the exemption of some medicines from VAT in accordance with the needs of special groups of citizens that will be taken into account in future projects.”
A. Khudiyev states that citizens fighting rare diseases have difficulties in obtaining medicines: “There are rare diseases that are not registered because, as their name suggests, they are rarely found. The importation of medicines used in the treatment of The entry of these diseases to the country is only possible with certain permits. In addition, it is advisable that citizens are exempt from VAT for the treatment of oncological diseases, asthma and other chronic diseases. It is true that some medications to treat them are provided to citizens free of charge. be exempt from VAT”
The expert emphasizes that when this decision comes into force, additional measures may be taken in relation to other medicines: “Today, citizens of Azerbaijan have the possibility of receiving free medical care thanks to compulsory health insurance. It is expected that care outpatient clinic will be free in the future. Its implementation will mean a big change in our social policy. We, as an association, will try to support the successful implementation of the processes.”
MP Mushfiq Mammadli states that it is important to take these measures taking into account both the economic situation of the country and the health of the population: “The price of medicines used in the treatment of rare diseases and some chronic diseases is quite high. Since the incidence “The number of these diseases is very low, those medications. “Because these medicines are not produced in all countries, people suffering from these diseases face great difficulties in obtaining them and I consider it the right step.”
Ilgar Huseynli, an expert on social issues, also confirms that medicines used in the treatment of rare diseases are very expensive not only in Azerbaijan, but also in the producing country: “Exempting these medicines from VAT means at least 18 percent cheaper “The country depends on imports in this area. I think that not only medicines used in the treatment of rare diseases, but in general all medicines imported into Azerbaijan should be exempt from VAT.”
Our interlocutor affirms that the application of this standard will be very useful for people’s access to medicines: “There are many diseases, medicines are expensive. A disease usually requires long-term treatments. Most people cannot continue with these treatments because they are expensive. “Because the costs are quite high. The VAT exemption for medicines will make a significant difference in prices. “I think it is useful and necessary to exempt all imported medicines from VAT.”
