Statistics are relentless: in Bosnia and Herzegovina (BiH), medicine prices are the highest in the region. Because of cheaper medicines, citizens living in border areas go to neighboring Serbia and Croatia, and savings, they say, can be up to 40 percent for certain medicines.
Stevo Manojlovic, a retiree from Zvornik, regularly purchases the medicines he needs in Serbia. As he says, just a few hundred meters away, across the bridge, the price difference is significant.
“I go just around the corner here. There used to be three, now two are closed. Some medicines are more expensive here, but some are cheaper. Every BAM counts, especially for retirees like us with lower pensions,” says Stevo Manojlovic, retiree.
How staggering the prices of medicines and medical supplies are in BiH is best known by retirees and chronically ill patients.
“I am one of them too, although I rarely need medicines, but I go whenever I need to buy something. Many also go for vegetables and fruit, and even bread,” says Tonka Jovicic from the Pensioners’ Association of the City of Zvornik.
A high VAT rate is one of the key reasons why medicines in BiH are more expensive than in neighboring countries. Citizens point out that by buying “next door” they save even several BAM on a single medicine.
When asked whether medicine prices in the country will be reduced and whether margins can be limited, we were unable to get an answer from the Agency for Medicines and Medical Devices of BiH. Previously, they stated that price reductions could occur if VAT were lowered or if a differential retail margin were introduced, the amount of which is determined by the entity’s ministries of health.
“We have asked this question several times to the ministry and have not received an adequate answer. Most likely, these are transactions handled by those involved in medicine trade here. When the first discussion about limiting margins came up, it was said that margins would be limited to around 17%. The question is how high the margins were before,” says Jovan Vasilic from the Consumer Association “Zvono” Bijeljina.
While citizens manage by purchasing medicines across the border, the authorities still do not offer concrete solutions, and the proposed ones lack support.
Unlike BiH, neighboring countries have a general and special tax rate for medicines. The tax rate in our country is the highest in the region and is even three times higher than in Croatia and North Macedonia.
