Armenian drug prices frozen for 1st-qtr 2001

Armenia's Ministry of State Revenues and the country's largest drugimporters have agreed that medicines will be sold in the country in first-quarter 2001 at December 2000 prices, reports the Snark news agency.

Drug prices rose 35%-40% at the start of the year after 20% value-added tax was introduced. During first-quarter 2001, the government will monitor the drugs market closely and will, if necessary, make changes to the law on VAT on medicines in April.

The Minister of State Revenues, Andranik Manuyan, said the importers' agreement to sell at December 2000 prices was praiseworthy, as they may sustain financial losses as a result. He also said that, of 6,000 brands of drugs sold in Armenia, only 2,500 are registered, and many drug firms make huge profits, allegedly by faking invoices, which his Ministry will address. Armenia imported drugs worth $40 million last year.