On December 9, 2015, at 10:30 a.m., a press conference was held in the press center of the UNIAN news agency on the topic: “Illness tax: introduction of 20% VAT on medicines and medical devices and consequences for patients.”

The press conference was attended by: Tetyana Kulesha, Association of patients with orphan diseases; Oleh Musii, Committee on Health Protection; Volodymyr Ignatov, Association of Representatives of International Pharmaceutical Manufacturers AIPM Ukraine; Volodymyr Rudenko, VGO “Pharmacy Professional Association of Ukraine”; Pavlo Kharchyk, Association “Medical Devices Market Operators” ; Tetyana Kotlyar, public union “All-Ukrainian Pharmaceutical Union “FARMUKRAINE”; Volodymyr Redko, Association of Manufacturers of Innovative Medicines “APRAD”.

In September of this year, the Ministry of Finance of Ukraine presented the tax reform project 2016, which proposes the application of a unified tax rate of 20% for each sector of the economy. Thus, the VAT rate on medicines and medical products will increase from 7% to 20%, which will inevitably lead to a proportional increase in their cost. And, since VAT is a tax aimed at the end consumer, the burden of its increase will fall on the shoulders of patients, and this is in the conditions when the state provision of medicines and medical products in Ukraine is the lowest compared to other countries of the CIS region and does not exceed 15- 18%.

Representatives of the pharmaceutical sector and patient associations expressed their concern about this issue at the press conference, because the increase in the VAT rate on medicines and medical products can lead to inevitable negative consequences.

The participants of the press conference drew the attention of those present to the fact that, when introducing 7% VAT on medicines and medical products last year, the funds were supposed to go to the reimbursement financing fund, which was never formed. For most patients, treatment becomes unavailable. And the increase of the value-added tax on medicines and medical products to 20% from the current 7% will affect ordinary citizens even more, taking into account the fact that under the existing system of medical care, the patient meets 90% of his needs at his own expense.

Separately, the attention of those present was focused on the problems of patients with orphan diseases. This group of patients is already not receiving adequate treatment. For such patients, this is an extremely critical situation, and the 20% VAT rate will put their lives at risk.

The speakers emphasized that the increase in prices will apply not only to imported medicines, but also to products produced in Ukraine, because substances for the production of medicines are also imported.

As for medical products, there is actually no domestic manufacturer in Ukraine. And an increase in VAT will necessarily lead to an increase in prices for medical products, a decrease in their availability or the complete disappearance of certain medical products from the market of Ukraine.

Speakers of this event are convinced that next year’s budget will be filled again at the expense of ordinary citizens, instead, in order to develop production and create new jobs.

Medicines and medical products, unlike most other goods that ultimately bring satisfaction to consumers, belong to the category of vital goods, and the need for them is directly related to a priceless good – health and human life itself. Therefore, it is extremely important that they remain economically accessible to absolutely all sections of the population.