The measure also proposes a reduction in the rate by 60% for 850 medicines, aiming to reduce product costs; government hopes to approve the text by the end of July in the Chamber and by the end of the year in the Senate
The proposed regulation of the tax reform on consumption, sent to the National Congress, provides tax exemption for 383 medicines and vaccines, including those immunizing against Covid-19, The dengue and the yellow fever. Furthermore, it proposes to reduce the rate by 60% for 850 medicines, aiming at a significant reduction in product costs. Tax-exempt medicines include vaccines against covid-19, dengue fever, yellow fever, flu, cholera, polio and measles, as well as substances such as insulin and antivirals.
Also included are medications for treating erectile dysfunction, such as sildenafil citrate. The active ingredients with a reduced rate include medications for treating reflux, digestive ulcers, high blood pressure, diabetes, anti-inflammatories, anti-allergy, anti-rheumatic drugs and sexual impotence. The proposal aims to regulate the collection of Value Added Tax (VAT), composed of the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS).
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The government hopes to approve the text by the end of July in the Chamber and by the end of the year in the Senate. According to the extraordinary secretary for Tax Reform at the Ministry of Finance, Bernard Appy, the proposal will bring a significant cost reduction for medicines, in addition to lower prices due to the end of cumulative tax collection. The proposed average rate is 26.5%, reaching just 10.6% for medicines with the benefit of a 60% reduction in the general rate.
*Report produced with the help of AI
