Austria's drug prices cut by VAT reduction

A cut in value-added tax in Austria has resulted in price reductions for the relatively small number of affected drugs, according to the  country's research-based pharmaceutical association, the Pharmig. The  group's secretary general, Jan Oliver Huber, issued a statement  clarifying the situation after criticism from members of a parliamentary  opposition party, the Alliance for the Future of Austria (BZO). The  latter claimed that drugmakers were pocketing the tax reduction, an  allegation condemned as "shameless" by Mr Huber.

The Pharmig leader said that out of approximately 15,000 licensed drugs  in Austria, only 877 medicines (about 6%) were affected by the change in  the government's levy. Mr Huber argued that, "in general, the prices of  medicines sink from year to year." He added that "the VAT reduction, a  pharmaceutical industry goal for many years, is very advantageous to  patients and the health insurance funds [Krankenkassen] alike."