Entrepreneurs Dissatisfied With The Bill

ENTREPRENEURS DISSATISFIED WITH THE BILL

Lragir.am
19 April 06

The bill on drugs introduced by the Health, Social and Environmental
Committee would help to solve the problems caused by the shortcomings
and gaps in the law in force since 1997, say the authors of the
bill. People engaged in drug business disagree. This dissent became
known during the April 19 hearing on the bill held by the committee
in the National Assembly.

The bill was passed on first reading, and the organizers of the hearing
said the hearing is aimed at further elaboration of the bill. In
the meantime, the importers of medicine shared their concerns, which
had been expressed before but were not accepted. Ghukas Ulikhanyan,
the director of Emergency Aid Ltd., it would be wrong not to allow
pharmacies sell medicines that are available on prescription only,
which is foreseen in the bill. “It means pharmacies will have 400 types
of medicine, compared with the present 2000, and will close down.”

Besides, businessmen suggest lifting the VAT on drugs. This tax is
imposed on drugs since January 2001. Academician Emil Gabrielyan
says in Georgia the VAT on drugs lasted for six months. “They saw
it had a bad effect and lifted it.” The approach is the same in all
the CIS countries. Either there is no VAT at all, or the tariff is
very small. In Armenia the VAT was imposed despite the experience of
Georgia. Member of Parliament Hranush Hakobyan, Chair of the Committee
of Education, Science and Culture, said the VAT first caused the
prices of drugs to go up, then brought a great profit to people in
the business of medicine.