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Group calls for review on drug price cap, says gov't to lose P28B in revenues
By JON VIKTOR D. CABUENAS, GMA News The Pharmaceutical and Healthcare Association of the Philippines (PHAP) has appealed for the government to withdraw the price cap on medicines earlier ordered by President Rodrigo Duterte.
In a statement, PHAP said that with the drug price cap set to take effect in June, there will be a drop in government revenues and industry sales.
"The EO does not benefit the public in the end because of the formula used to compute the price adjustments," the group said.
"We appeal that the measure be withdrawn until further studies especially at this time when the government needs funds to fight COVID-19," it added.
It was referring to Executive Order 104, setting a maximum retail price on certain medicines, signed into law by Duterte earlier this year.
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LIST: Medicines covered by Duterte's price cap and their maximum prices.
According to PHAP, the measure will lead to P28 billion in lost government revenues -- P4 billion in foregone customs duties; P7 billion in lost value-added tax (VAT); and P17 billion in corporate taxes.
For the industry, the PHAP said it projects sales to drop by P57 billion from P200 billion once the full price control is implemented.
"Price control has not been effective based on global experience. It is a populist proposition but discourages production, creating scarcity that will likely hurt those in need of the medicines the most, and shrinks the industry," said the PHAP.
"We continue to appeal for a thorough review on the impact of this policy," it added.—AOL, GMA News