Health Ministry intends to reduce list of medicines exempted from VAT

The Ministry of Health and Social Development of Kyrgyzstan proposes to reduce the list of medicines that are exempted from VAT when imported into the country. The corresponding draft resolution of the Cabinet of Ministers has been submitted for public discussion.

As background statement says, the ministry proposes to keep in the list only those medicines and medical products that are included in the national list of vital medicines (432 items) and the national list of vital medical products (59 items).

According to officials, at present, almost all drugs and part of medical products are included in the list of exempted from VAT in delivery and import. But despite the tax exemption, prices remain high.

At the same time, in 2020, the amount of VAT exemption reached 2,678.2 billion soms. At the same time, those medicines and medical products that are not included in the lists take the main share in the total volume of imported medicines and medical products (65.2 percent). The estimated amount of VAT exemption is 1,736.7 billion soms.