- The finance ministry is reviewing the VAT Act, focusing on zero-rated and exempt goods, including healthcare items.
- There is public pressure to remove VAT and import duties on life-saving medication due to shortages in public hospitals.
- Medical services are VAT-exempt, but medicines are still taxable at a 15% rate.
- The ministry aims to maintain revenue for public health services by taxing medication.
- Removing VAT on chronic medication might not reduce patient costs, as suppliers often retain financial benefits.
- High medication prices are influenced by supply chain mark-ups, lack of local manufacturing, and high import costs.
- VAT contributes about N$21 billion annually, 25.6% of total tax revenue.
- Exempting chronic medication from VAT could impact funding for essential services.
Source: observer24.com.na
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
