The reduction in VAT on medicines provided for in the PLF 2023

Following the high royal instructions emphasizing health and citizens’ access to care, the decision to reduce the Value Added Tax (VAT) on medicines is currently being implemented and supported by the Minister of Health and Social Protection, Khalid Ait Taleb, as well as the Minister Delegate in charge of the Budget, Fouzi Lekjaa, with the aim of providing Moroccans with medicines at reasonable prices.

This applies specifically to VAT on medicines and taxes on imported health products, medical and paramedical equipment and materials. This is what an official press release made public this Saturday revealed, specifying that it is a decision which will be decided within the framework of the finance bill for the year 2023. .

Khalid Ait Taleb’s department previously said in a statement thathe “was thus decided, by Ministerial Decision No. 459 dated August 22, 2022, to set up a steering committee, bringing together the stakeholders, which will be responsible for identifying the needs for medicines and health products concerned by this strategic stock. , in particular medicinal products of major therapeutic interest”, adding that “the measures that will be put in place“aim to ensure”continuous supply for the benefit of healthcare professionals in the public and private sector and uninterrupted patient care”. He also pointed out that the Directorate of Medicines and Pharmacy will ensure coordination with the committee concerned.

In this regard, Nizar Baraka, the Minister of Water and Equipment, declared at the beginning of the current month in an interview with MFM radio that ” Ihe decision to abolish VAT on medicines is justified. There is no reason for patients to pay VAT on medicines. In addition, no Arab country has VAT on medicines“.

It should be remembered that itCertain medicines are currently exempt from VAT in Morocco, including medicines for chronic illnesses such as cancer, diabetes, high blood pressure and asthma. However, a 7% VAT is applied to the rest of the medicines.

The reduction of this tax will allow Moroccans to save approximately 1.12 billion dirhams, out of approximately 16 billion dirhams disbursed each year for the acquisition of drugs. It will also be beneficial for the pharmaceutical industry, as explained by the Moroccan Federation of Pharmaceutical Industry and Innovation (FMIIP), ” them acquisitions of machinery and investments are taxed at 20%, and purchases of inputs are taxed at 7%“, the decision “swould be a much more relevant and suitable solution for a better impact on the price of drugs“.

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