French Drug Sales Tax Now Set In Concrete For 1998

France's National Assembly has now confirmed the imposition of a 2.5%"contribution" by the pharmaceutical industry, under Article 8, section 2 of th revized social security code (Marketletters passim). The contribution - or rather tax - will be levied on drugmakers' sales (excluding taxes) direct to pharmacists, with the specific exception of generic specialties.

The legislation goes on to state that when a drug company has not produced a sales declaration with the requisite detail in the time allotted, or has produced a "manifestly incorrect" declaration, the provisional rate of the contribution will be 10% - calculated on the last-known direct sales figure or by other means if this is necessary.

The 10% rate will also apply if a company is late in making declarations. Moreover, the levy will have to be paid by drugmakers on the last day of each quarter at the latest, on the basis of the sales achieved in the preceding quarter.