Rx drug tax cut for Macedonia

The Macedonian government has announced plans to sharply reduce taxes on a range of goods, including drugs and medical appliances, from 18% to 5%. The country's Prime Minister, Nikola Gruevski, informed a press conference that, under the enabling legislation, pharmacies would be obliged to pass on the rebate to consumers.

Mr Gruevski said: "we have a guarantee that the decrease of the prices will be implemented since it is an obligation deriving from the law on medicines, which has already entered the Parliament's revision process."

He added that the tax rebate would reduce government revenues by about 11.0 million euros ($15.0 million) and is in accordance with International Monetary Fund agreements. Macedonia's "gradual but steady growth," the Prime Minister said, had made the decision possible earlier than previously expected. Similar tax cuts for computers and other goods have also been announced in recent days.