Opposition worried over VAT on medicines

TIRANA, Feb. 21 – The opposition Socialist Party said the implementation of the 10 percent valued added tax (VAT) on medicines starting from February 1, this year was severely affecting pensioners. Speaking at a press conference, SP lawmaker Arben Ahmetaj said last year’s miserable increase in pensions was nothing compared to what the 550,000 pensioners are facing from increased medicine prices.
The biggest opposition party claims that government is taking 28 million euros from pensioners within the list of reimbursed medicines following the introduction of the 10 percent VAT, meaning 158 euros for one pensioner or more than one monthly pension.
“This is not a measure to regulate the market, but a measure to fill up the empty state coffers because of corruption and robbery of public assets,” said Ahmetaj.
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.