Medicine Prices Set to Rise in Kyrgyzstan with Introduction of VAT
Medical Costs on the Rise in Kyrgyzstan
The cost of medicines and medical products in Kyrgyzstan is set to increase, according to Asel Turdalieva, a specialist at the Ministry of Health. This change comes as a result of a new resolution by the Cabinet of Ministers, introducing a value-added tax (VAT) on these essential goods in the country. The resolution, signed on August 27, reverses the previous decision that exempted medicines and medical products from such taxation.
The VAT rate is now set at 12 percent of the taxable supply and taxable import, leading to an expected 12 percent increase in prices for medicines and medical products. Almazbek Altybaev, Executive Director of the Pharmaceutical Union of the Kyrgyz Republic, has voiced concerns that the introduction of the VAT may result in a surge of smuggling activities, with prices potentially rising by as much as 60 percent.
Already, the prices of some medicines have seen a significant hike. For instance, hypertensive patients have noted that a medication like Aira 16, which used to cost between 600-700 soms in the summer, is now being sold for no less than 1,100 soms.
As the cost of essential medical supplies continues to rise in Kyrgyzstan, concerns over access to healthcare and affordability for the population are growing. It remains to be seen how the government and relevant stakeholders will address these challenges in the coming months.
