On August 11, 2021, the “Pulzo” website commented on the proposed VAT on pharmaceutical products.
1. Growth law
According to Édgar Díaz Contreras, the senator of the Cambio Radical party ensured that the ‘Growth Law’ should be reconsidered. The regulation, known as Law 2010 of 2019, covers national pharmaceutical companies, having the refund of VAT paid during the manufacture of medicines.
2. VAT exempt
The Growth Law helped to create a balance between domestic and international manufacturers, as the latter are exempt from paying VAT due to the different free trade agreements that currently exist.
3. VAT approach in the new tax reform
The senator’s idea emphasized his proposal to impose VAT, intending to include the following products in the new document, excluding them from the exempt list:
- Products used in opotherapy, i.e., the use of animal tissues to treat diseases.
Animal or human blood for therapeutic use.
4. Rising drug costs?
Some senators consider that this proposal represents a threat to national production and would affect thousands of jobs. Above all, it would lead to an increase in the cost of medicines, affecting the Colombian wallets.
Source: Pulzo 12/08/21