Recommendation to Reduce Sales Tax on Medicines to 0%

16-May-2019

The Committee on Economy and Investment called on Tuesday to reduce the general tax on sales of medicines to 0%, while recommended to amend the customs item for food supplements and medical supplies.

"It will make recommendations to the government, including the amendment of the customs item for food supplements and medical supplies, subjecting them to a clear pricing mechanism and reducing the general tax on sales of medicines to 0 percent," the committee said in a meeting with the health minister and director of the Food and Drug Administration.

Former Minister of Health Dr. Ghazi Al-Zabin told the Kingdom that there is a rise in the price of medicines by at least 45%, pointing out that the rise is due to the pricing that has existed since 1973. He pointed out that warehouses take about 19% and pharmacies take 26% of the prices of medicines.

Director General of the General Organization for Food and Drugs Heil Obeidat told the "Kingdom" that 70% of the medicines in the Jordanian market cost less than 10 dinars, and 40% of the price of less than 5 dinars.

"I think the problem with expensive drugs, which do not yet form from 7% to 11%," according to Obaidat.

Obeidat explained that "about 200 preparations, including droplets of eyes and needles oil and vitamins and supplements are subject to a 16% tax based on the tariff item in the system of the Ministry of Finance."

Director General of Income and Sales Tax Department, Hossam Abu Ali said that "14 items including medicines and pharmaceutical products are subject to a 4% reduced sales tax."

Health Minister Saad Jaber suggested that "a two-week chance or more" be given to the committee formed by the ministry that is studying and reviewing the reality of the prices of medicines in Jordan, especially that the work is "difficult for the committees especially during the month of Ramadan."









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