Austria's Pharmig greets VAT cut

Austria's research-based pharmaceutical industry association, Pharmig, has welcomed proposals from the coalition Social Democrat-Christian Democrat government to reduce the rate of value-added tax on drugs. The group's secretary general, Jan Oliver Huber, who noted that Pharmig had been campaigning on this issue for several years, said: "by lowering the VAT on medicines two important goals are achieved." First there is a saving per year of 60.0 million euros ($86.6 million) to patients. Second, the measure will reduce some of the pressure on health insurance firms, some of which will also save the same amount.

Whether the proposals will actually be implemented must now be in some doubt, given the election results of September 28 in Austria, which has seen far-right political parties make substantial gains in Parliament. According to media reports, the election was called because of splits within the governing coalition.