3.05 There should be no VAT on medicines
VAT on medicines means that Danes pay more for their medicines than the inhabitants of other European countries – even though the companies' prices are the same in the countries.
Medicine usage being composed as it is, the 25 per cent VAT charged on the sale of medicines in Denmark means that pensioners and the chronically ill pay the greater part of the VAT revenue. This fact conflicts with the latest amendment to the law on reimbursement, which was made precisely to accommodate sections of the population with a heavy use of medicines.
There are no sustainable economic arguments for keeping VAT on medicines – apart from maintaining public revenue. On the contrary, there are actually important social and health considerations that speak for medicines being free of VAT.
Lif believes:
- that VAT on medicines should be abolished, or, failing that, reduced as much as possible.
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