Drug prices remain unchanged despite lowered excises

The excises on imported medicines were reduced, but their price on the internal marked didn’t change. The observation was made by the head of the Court of Accounts Serafim Urecheanu after hearing the report on the activity of the Customs Service in 2011, Info-Prim Neo reports. According to the report, Moldova offers tax facilities for the import of medicines, raw materials for drugs and some kinds of medical goods. Thus, 231 companies enjoyed exemptions totaling 138 million lei in 2011. The biggest exemptions, about 89 million lei, were granted to four large companies. However, according to the audit report, this didn’t lead to a drop in medicine prices in drugstores. Deputy Minister of Finance Victor Barbaneagra explained there were two types of exemptions for drugs and most companies tried by various means to get the most convenient ones. The official added that the relevant legislation needed to be amended and the Ministry of Finance might soon propose some changes. During the meeting of the Court of Accounts, it was reported that tax exemptions were unjustifiably offered for the import of petroleum products. The Deputy Minister of Finance answered that such fiscal facilities leave a hole in the state budget and the attempt to eliminate them proved unsuccessful.