Import of pharma drugs may stop due to 30% tax

The other day the deliveries of imported drugs and medical equipment to Belarus may completely stop.

And it's not about importers' greed.

Price setting for medical products and equipment is regulated by Lukashenka’s Decree No. 366 from August 11, 2005. In particular, the size of the wholesale markup, which the importers can apply to imported goods, is limited by 2-11% for medical products, for medical supplies — 5-13%, "Nasha Niva" reports.

Therefore, an importer of medical products, bought goods abroad at $1000, will be able to sell them in Belarus for not more than 12.1 million of Belarusian rubles. And it is only in case with the cheapest drugs, at $5 purchase price per unit, which will apply the maximum allowance of 11%.

When goods are sold and money is received, the importer will go to the stock market to buy the currency to settle accounts with suppliers. He can buy less than $854 for Br1.2 million.

Thus, the net loss from such imports even at maximum wholesale markup will be equal to 15% of the amount of the purchase. At the same time we do not take into account other standard costs.

During the financial crisis in 2011, when for a time there was a dual exchange rate; importers of medical products were given the right to buy foreign currency at the exchange rate of the National Bank. Today this right applies only to oil and gas imports.

There are two possible variants for the authorities. They may either amend the Decree of the President, regulating the procedure of settlement of release price of medical imported goods (to allow taking into account 30% commission) or make the same exception for importers of medical products and supplies as well as for importers of power resources. Otherwise, the import of medical products and equipment can stop.