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- Peru bill proposes to eliminate tax for COVID-19 health products
Peru bill proposes to eliminate tax for COVID-19 health products
A draft law submitted last week to Peru’s unicameral Congress proposes to exempt active pharmaceutical ingredients (APIs), drugs, medical equipment and materials for the treatment and prevention of COVID-19 from value added tax (IGV). If approved, the measure would extend 6 months after the conclusion of the health emergency.
The bill is aimed at reducing final prices for patients, which could potentially drive up sales. It is similar to a measure excluding cancer treatments from IGV that was adopted in 2001 to improve medicine access.
According to proponent Erwin Tito Ortega, COVID-19-related medicines have experienced steep price increases during the epidemic, which has affected access by patients.