At the initiative of the Committee for the Protection of Competition, the State Duma held a discussion of the Ministry of Finance’s initiative to introduce excise taxes on pharmaceutical substances of ethyl alcohol (ethanol), including medical alcohol, for domestic manufacturers of pharmaceutical products.
The purpose of this initiative is to prevent the circulation of illegally produced alcohol. However, it should be noted that excise duty is an indirect tax added to the price of goods produced in the country, and, accordingly, its introduction will affect the final cost of the goods. Today, the pharmaceutical industry is already experiencing a serious financial burden due to the rise in the cost of excipients, pharmaceutical substances and intermediates, packaging materials and software, the complication of logistics schemes, the increase in the exchange rate, meanwhile increasing the cost of pharmaceutical inspections is also being discussed. All this has a negative impact on the cost of pharmaceutical products, reducing the profitability of pharmaceutical manufacturing and making the manufacturing of low-price pharmaceuticals unprofitable, which, in turn, leads to their «washing out» from the market.
Initially, the developer of the initiative voiced the option of possible subsidies for pharmaceutical manufacturers to cover their costs if the bill is adopted, but to date this mechanism has not been developed and has not been presented to interested parties.
The participants of the meeting clearly spoke out against the presented draft law, considering it untimely, entailing negative consequences for the industry, and consequently for the entire system of drug provision, reducing the availability of a number of drugs for the population. In addition, the stated goal — preventing the circulation of illegally produced alcohol — it, in its current version, will not be achieved.
The head of ARPM Victor Dmitriev noted: «We understand and support the need to stop the illegal turnover of alcohol, but the issue requires in-depth study, taking into account the interests of patients, the state and business. The option we are familiar with is untimely and harmful.»