Bode blames distorted market for medicine price increases

TIRANA, March 1 – Finance Minister Ridvan Bode has described the recent increase in medicine prices as abusive and warned to take measures against what he described as pharmaceutical monopolies controlling the market, In a hearing session with the opposition at the parliamentary economy and finance committee on Tuesday, Bode said the 10 percent VAT on medicines in force since February 1, 2010, was a measure to fight monopolies and increase competition. According to him, the medicine prices undergo increases of up to 54 percent from import prices when sold in pharmacies.
Opposition lawmakers of the economy committee demanded an inquiry into the market and penalties for wholesale abusers.
The hearing with Finance minister Bode came few days after the opposition publicly denounced the rising medicine prices following the VAT implementation.
Last December, government decided to impose a 10 percent VAT on medicines as a measure to prevent abusive prices in drugs whose prices are up to 60 percent higher compared to EU countries.
Finance Minister Ridvan Bode said medicines were the only duty-free products which cost 25-60 percent more than in EU countries at a time when other products which are taxed are at least 40 percent cheaper than in EU countries.
Meanwhile, VAT on health services has been cut to 10 percent, from 20 percent last year.
Bode said that stock medicines which had entered Albania before Feb. 1 2010 continued being sold under their old VAT excluded prices which was also proved during field inspections. He said working groups had been set up in cooperation with the Health Ministry to examine the final sale prices for medicines, claiming that prices will be in decline starting from the next 3 to 4 months.