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Thursday, 1 December 2016

All production inputs for the pharma industry could be made VAT-exempt

Pharma lobbying for additional VAT exemptions, customs breaks? The House of Representatives could make all production inputs for the pharma industry exempt from value-added tax, Al Borsa reports. Active ingredients used in production are already exempt from the VAT under the new regulations, and the House Committee on health wants to discuss with cabinet extending the exemption to include non-active substances and packaging material. MPs are also discussing “discounted utility fees” (read: energy subsidies) and customs breaks for manufacturers in the industry. Pharma companies have been in uproar lately over the state’s refusal to allow them to reprice in light of their mounting costs following the EGP’s devaluation.

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