Drugs made overseas to be tax free

BEIJING: Pharmaceuticals made overseas, including cancer drugs and traditional Chinese medicines, will be exempt from import taxes starting May 1, as part of a package of polices to improve drug access and public health in China.

The move comes just over a week after the central government released measures to boost the production and clinical application of generic drugs to help lower the cost of medical bills.

The State Council, which announced the exemptions after an executive meeting on Thursday, also said the value-added tax on the production and import of drugs will be cut by a large amount, a decision experts say will be even more effective in easing patients’ financial pressures.

Imports of innovative medicines will be encouraged, while the protection of drugmakers’ intellectual property rights will be strengthened, the Cabinet said.

This month, the central government issued a notice encouraging the development and production of generic drugs that are in short supply.

A generic drug is a medication that has the same active ingredients as a brand-name patented drug and yields the same medicinal effects, but it can be marketed only after the patent has expired. — China Daily/Asia News Network