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► Government considers VAT on imported pharmaceuticals

Ukraine’s Prime Minister recently met with pharmaceutical distributors. He told at the meeting that the Cabinet of Ministers of Ukraine is currently considering the introduction of a value added tax (VAT) on drugs imported into the customs territory ofUkraine.

This tax, he said, will have more of an account nature than a fiscal one. It should not result in higher pharmaceutical pricesbecause a refund mechanism will be introduced simultaneously.

The Prime Minister also noted that almost all European countries have a VAT on pharmaceuticals and that the lack of itin Ukraine leads to manipulation and fraud.

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We will continue to monitor developments in this sphere and willbe pleased to answer any of your questions.