Medicines, especially for chronic conditions, are critical to survival, and should be exempted from VAT, official opposition health spokesman Ryan Coetzee says.
In a statement released at Parliament, Coetzee argued that food, too, was necessary for survival and basic foodstuffs were already exempt from VAT.
Coetzee noted that it had been revealed that, despite it being a recommendation of her own pricing committee, Health Minister Manto Tshabalala-Msimang “appears to have taken no action whatsoever to address the question of VAT on
medicines”.
Coetzee noted that at a conference for pharmaceutical wholesalers on Monday, a member of the government’s pricing committee stated that the committee had made a recommendation for the removal of VAT from medicine. She said that they had heard nothing further on the proposal.
In August Coetzee had asked Tshabalala-Msimang whether discussions with the Ministry of Finance on VAT formed any part of her investigation into mechanisms for reducing the cost of drugs. She replied only that “the issues of VAT in general, and VAT on medicines in particular, falls under the competency of the Department of Finance”. Coetzee said the
implication was that she had done nothing.
“Tshabalala-Msimang is displaying double standards in her approach to medicine pricing. While on the one hand she is forcefully pursuing price reductions by the private sector, she is taking no action over the continued levying of VAT on drugs – an area where the government could make an enormous difference.
“It is time for her to realise that everyone in South Africa has a role to play in reducing the cost of life-saving medicines – including the government,” he said. – I-Net Bridge