21 rare disease drugs welcome tax cuts, open space for drug price cuts

Pharmaceutical Network February 22nd, the State Council executive meeting held before the decision to give vat on rare diseasedrugsMore than 20 million patients with rare diseases should be protected from medicationFrom March 1, the first batch of 21 rare disease drugs and 4 raw materials, with reference to anti-cancer drugs on the import of 3% vat, domestic links can choose to collect value-added tax according to the simple 3%"the introduction of VAT preferential policies for rare diseasesis the beginning of this year's VAT reform, which means that there will be larger, more preferential VAT reform policies in the futureZhang Yiqun, vice chairman of China's budget performance committee, told the Securities Daily that the introduction of value-added tax on rare disease drugs by a simple 3% method can alleviate the problem of the high cost of drug use on the one hand, and on the other hand, it can promote the production of such rare drugs and raw materials
especially domestic production enterprises research and development input, expand market supply, and form a sustainable supply and demand for special drugs to be guaranteed."from May 1 last year, the general taxpayer of value-added tax for the production and sale of wholesale and retail anti-cancer drugs, can choose to pay the value-added tax according to the simple method, according to the 3% collection rate; Xu Guocho, inspector of the tax department of the Ministry of Finance of the, said that the next step, we will actively work with relevant departments to implement a good drug tax policy, support the development of the pharmaceutical industry, and effectively protect the needs of patientsCombined with the update of rare disease drugs, timely text clear the follow-up batch to enjoy the list of rare disease drugs to enjoy the VAT policy, but also in conjunction with further deepening the reform of value-added tax, and constantly improve the VAT system arrangements, optimize the tax environment of drugszhang Yiqun,, believes that the country's VAT concessions for rare disease drugs are only the beginning, the country's rare diseases, cancer and other need shorter-term medication, high drug price burden of the special population to give unprecedented attention, is the Chinese government concerned about people's livelihood, attention to medical important measures, the future to enjoy VAT concessions of the scope of drugs will be further expanded, more and more patients will benefit from it" VAT reform should focus on reducing the overall tax burden of enterprises, simplifying and optimizing the structure of the VAT tax system, promoting economic restructuring and industrial transformation and upgradingThis year, the size of the VAT tax reduction will be expanded, if the tax rate is reduced by 2 percentage points, the size of the VAT tax reduction will reach 800 billion yuan to 1 trillion yuanZhang Yiqun saidZhang Yiqun,, said that simplifying and optimizing the structure of the VAT tax system is mainly to make three tax rates and two, which can greatly facilitate taxpayers to pay taxes, simplify the complexity of the tax collection process and links, and, more importantly, reduce the burden of enterprise value-added tax and encourage enterprises to better use the market environment to achieve fair competitionIn promoting economic transformation and industrial upgrading, due to the full chain deduction of value-added tax and the simplification of tax rates, the strategic objectives of the reform of the national supply-side structure can be realized through the vat-based deduction policy and the applicable tax rate policy, and enterprises can further increase their investment in scientific and technological research and development, and continuously enhance the influence of China's enterprises' own brand and the ability of independent research and development of product core technology.