Tax Service plans to collect 1 billion soms from VAT on medicines by end of 2024
By the end of 2024, the Tax Service of Kyrgyzstan intends to collect about 1 billion soms from value-added tax (VAT) on medicines and medical products. The Tax Service informed 24.kg news agency.
Next year, the state agency plans to increase revenues from this tax to 4 billion soms. The State Tax Service added that it would take measures of control in accordance with the general norms of tax legislation.
On August 27, the Cabinet of Ministers introduced a new resolution, according to which VAT on medicines and medical products in the country will amount to 12 percent of the taxable supply and import.
Earlier, a specialist from the Ministry of Health, Asel Turdalieva, reported that in connection with the adopted resolution, prices for medicines and medical products in Kyrgyzstan are expected to increase by 12 percent.
The Executive Director of the Pharmaceutical Union of the Kyrgyz Republic Almazbek Altybaev noted that if the republic introduces a value-added tax on medicines and medical products, their smuggling may increase to 60 percent. The cost of medicines may also increase.
Price of some medicines has already noticeably increased. For example, hypertensive patients said that if in the summer Aira 16 cost 600-700 soms, now it can be bought for no less than 1,100 soms.
