The latest official tax cut, these 39 anti-cancer drugs, 14 rare disease drugs to reduce prices?

Recently, the State Drug Administration, together with the General Administration of Customs, the Ministry of Finance, and the General Administration of Taxation and other four departments jointly issued the second batch of the application of value-added tax policy of anti-cancer drugs and rare diseases of the list of drugs announced.
The Proclamation makes it clear that, in order to encourage the development of the pharmaceutical industry and reduce the cost of drug use for patients, from October 1, 2020, the list of anti-cancer drugs and rare disease drugs will be in accordance with the Ministry of Finance, General Administration of Customs, General Administration of Taxation, State Drug Administration on anti-cancer drugs Notice of VAT Policy (Finance and Taxation (2018) No. 47), Notice of the General Administration of Customs of the Ministry of Finance, General Administration of Taxation, Drug Administration on VAT Policy on Rare Disease Drugs (Treasury and Taxation (2019) No. 24) provides for the implementation of the relevant VAT policy. the
list shows that the anti-cancer drug preparation and API part, involving 39 varieties and 6 varieties, the preparation part includes non-small cell lung cancer targeted treatment drug dacotinib tablets, metastatic colorectal cancer treatment drug pyriquine capsules, local late stage or metastatic breast cancer treatment drug pyridoxili, ovarian cancer target drug Olapani and so on. in the
rare disease pharmaceutical preparation section, there are a total of 14 varieties, including the treatment of multiple sclerosis of the troponin tablets, the treatment of spinal muscular dystrophy of nosine sodium injection, the treatment of rare diseases in adults and children with bouts of sleep hemoglobinuria and atypical hemolytic uremia syndrome of icingum monoantigen, the treatment of Fabre disease injection with agaglycase β.
Never, according to the two documents of Finance and Taxation (2018) No. 47) and (Finance and Taxation (2019) No. 24), the listed drugs may choose to pay VAT in accordance with the simple method of calculating the rate of 3% collection when the general taxpayer produces and sells vat, and the above-mentioned taxpayers may not change it within 36 months after calculating the payment of value-added tax by simple method.
the same time, for the import of anti-cancer drugs and rare disease drugs, the import link value-added tax is reduced by 3%.
As early as April 2018 and February 2019, the four departments issued the first list of anti-cancer drugs and the first list of rare disease drugs applicable to the two documents, involving 154 anti-cancer drug preparations and API, as well as 25 rare disease drug preparations and API drugs.
the reduction in VAT will result in a direct reduction in the value of these clinical applications and the urgent need for imported medicines? In this regard, the relevant pharmaceutical companies said to The Valley: "The introduction of such serious diseases and rare diseases imported drugs tax reduction policy will indeed reduce the tax burden of the relevant import enterprises, most of the drug import value-added tax rate is 13%, now at 3%, the tax reduction is still relatively large."
This initiative is conducive to the relevant enterprises to reduce the domestic sales price of such products, but this price reduction is not an immediate sharp price reduction, after all, drug pricing is a complex decision-making process involving a number of comprehensive factors, specific to each enterprise each disease area and the characteristics of different stages of the product life cycle, so whether the relevant drugs will adjust the price accordingly according to the actual situation of each enterprise to make a comprehensive decision.
" so far, there is no pharmaceutical companies explicitly said that they will reduce prices.
, however, the dividends for pharmaceutical companies are real, with some saying the tax cut would save cash flow for production and sales companies.
the original enterprises need to pay import value-added tax, and then to the tax department for VAT deduction.
are now paying less tax on import value-added tax, and capital turnover is more flexible, saving operating costs.
At the same time, there are industry insiders pointed out that the tax reduction policy has shown a clear signal that the country hopes to develop production, circulation and payment of a number of related policies, reduce drug prices, improve drug access.
, the regulatory authorities also hope that through the introduction of imported drugs, so that domestic pharmaceutical companies healthy competition, to promote the development of local innovative pharmaceutical enterprises.
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