The initiative related to the abolition, i.e. reduction or refund of VAT on medicines, according to the latest idea of the authorities, even if it is adopted, will not financially affect the prices of medicines paid by citizens.
Given that the abolition of VAT on medicines would mean changes to the VAT Law and changes to the information systems and the Indirect Tax Administration, the Health Fund and the pharmacy system, the new initiative – VAT refund that is being discussed is also acceptable for Healthcare funds in Bosnia and Herzegovina.
It should be considered that the VAT, which the funds pay on medicines, be allocated in such a way that the funds with a certain percentage are included in the coefficients already defined by law for the redistribution of funds according to the entities.
RATKO KOVAČEVIĆ, spokesperson of ITA BiH:
“We are of the opinion that first a quality and good analysis must be done, especially in terms of the effects that are expected, on the one hand the loss of income, and on the other hand whether such a procedure would lead to a reduction in prices, which should be the goal, in ultimately, one such initiative.”
If the option to somehow agree on the return of VAT to health care funds is passed, this will practically have no effect on reducing the final price of medicines paid by citizens.
UROŠ VUKIĆ, Association of Citizens “Think Good”:
“My opinion is that the authorities in Bosnia and Herzegovina are trying to lower the prices of drugs, but in a way that they do not affect the wholesalers and retail chains of pharmacies, which can be understood, which can be justified by the strong lobby of the pharmaceutical industry. So what now they only propose pouring it from hollow to empty.”
And the prices of drugs in retail will still remain high, given that the Medicines Agency is not in charge.
“In accordance with its scope of work, which is given by the Law on Medicines and Medical Devices of Bosnia and Herzegovina, this Agency regulates the prices of medicines in such a way as to determine the maximum wholesale price of the medicine. The Agency is not competent for the retail prices of medicines”, the Agency states.
The VAT rate on medicines in Bosnia and Herzegovina is 17 percent and is the highest in the region, and the costs on this basis for health systems amount to more than 260 million marks per year.
Taking into account that the idea of abolishing VAT on medicines is as old as the introduction of this tax itself, it can only be concluded that we will continue to spend a good part of the household budget on treatment, BHRT writes.
