Ukraine. Exemption of Pharmaceuticals and Medical Products From Additional Import Taxation is Proposed

On 13 May 2015 the Verkhovna Rada of Ukraine registered a draft law “On Amendments to the Law of Ukraine ‘On measures to stabilize the balance of payments of Ukraine in accordance with Article XII of the General Agreement on Tariffs and Trade 1994’” (on taxation of pharmaceuticals and medical products) (hereinafter – the “Draft Law”). The registration number of the Draft Law is 2827.

The Draft Law proposes to expand the list of essential goods, including in it:

1. Pharmaceuticals approved for manufacture and use in Ukraine and listed in the State Register of Pharmaceuticals, and
2. Medical products from the list approved by the Cabinet of Ministers of Ukraine.

To remind, according to the Law of Ukraine "On measures to stabilize the balance of payments of Ukraine in accordance with Article XII of the General Agreement on Tariffs and Trade 1994" (on taxation of pharmaceuticals and medical products) essential goods are not a tax base for the additional import duty.

The Draft Law has been provided to the relevant Rada committees for consideration.

Source: EY Ukraine