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PJ Online homeThe Pharmaceutical Journal
Vol 276 No 7394 p376
1 April 2006

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Remove import taxes from drugs, say manufacturers

Pharmaceutical manufacturers have welcomed international pressure to remove import taxes from medicines.

Currently, only 22 of the 149 World Trade Organization member countries have signed up to a 12-year-old WTO agreement not to levy duties on finished pharmaceuticals. No developing country has signed it. The US, Switzerland and Singapore want pharmaceutical tariffs to be included in the Doha Development Round of WTO negotiations.

Countries that have the highest import tariffs on medicines include Iran (54 per cent), Nigeria (20 per cent), Thailand (18 per cent), Zimbabwe (17.6 per cent) and India (16 per cent).

International Federation of Pharmaceutical Manufacturers and Associations director-general Harvey E. Bale Jr said: “By acting immediately to remove tariffs on imported medicines, these governments will allow a broader section of their population to benefit from access to modern medicines. This will help improve public health in their countries, raise productivity and, ultimately, increase their economic competitiveness and wealth.”

Import taxes on medicines have also been criticised in a report by a coalition of organisations including the UK’s International Policy Network. The report recommends that policy makers in poor countries should remove taxes, tariffs and barriers that prevent the poor obtaining medicines. It also suggests that the patenting process needs to be improved in many countries and that all countries should consider increasing the effectiveness of their drug regulatory agencies.

The report is available (PDF 900K).

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