Several medicines and vaccines, including those against Covid-19, dengue fever and yellow fever, may be tax-exempt in Brazil. This is what the text of the tax reform sent to the National Congress foresees.
read more
Vaccines and medicines could become cheaper
Among the products that would be exempt from taxes are vaccines against covid-19, dengue, yellow fever, flu, cholera, polio and measles, as well as substances such as insulin (used for diabetes) and the antiviral abacavir (used against HIV ). Sildenaphilia citrate (used to treat erectile dysfunction) will also not pay tax.
Furthermore, the proposal provides for a reduction in the rate by 60% for 850 medicines. In this scenario, omeprazole (used to treat reflux and digestive ulcers), the anxiolytic lorazepam, the high blood pressure medication losartan, metmorphine (used for diabetes), the anti-inflammatory, antiallergic and antirheumatic prednisone and the medication for sexual impotence would come into play. tadaphilia.
According to the extraordinary secretary of Tax Reform at the Ministry of Finance, Bernard Appy, the approval of the proposal as sent by the government will allow “a relevant reduction in costs” of medicines. In addition to the reduction or exemption of rates, he highlighted that the end of cumulativity (cascade charging) will result in lower prices.
Tax reform is expected to be voted on this year
- The complementary bill regulates the collection of Value Added Tax (VAT).
- This tax is made up of the Contribution on Goods and Services (CBS), collected by the federal government, and the Tax on Goods and Services (IBS), which is the responsibility of states and municipalities.
- The government’s expectation is 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 government’s proposal, the average rate will be 26.5%.
- If there is a 60% reduction in the general rate, medicines with the benefit will only pay 10.6% tax.
- The information is from Agência Brasil.
