Prices of medicines to be reduced by 30% effective 1st March

The Chamber of Pharmacy is to reduce prices of medicines by 30% from 1st March, 2018.

The move, according to the Chamber is as a result of the Minister of Finance, Ken Ofori Atta removing the 17.5% VAT on imported finished medicines as contained in the 2017 budget.

The Chairman of the Chamber of Pharmacy, Anthony Ameka who made the disclosure in an exclusive interview with Akwasi Nsiah on Simiso on Kasapa FM stated that in the whole of West Africa, Ghana leads as the country that has prices of medicines being the most expensive, whereas at the World level, Ghana places second.

“From the foregoing it has become incumbent on us to put in place measures that will make the Health Insurance system more sustainable. So we held a stakeholder forum attended by Ministry of Health, Ghana Health Service, National Health Insurance Authority, World Health Organization, Ministry of Trade and Industry, Ghana Revenue Authority, Chamber of Pharmacy, Pharmaceutical Society of Ghana and we resolved to reduce the prices of medicines by 30% effective March 1, 2018.

Mr Ameka noted that this measure will not affect the local drug manufacturers as VAT has been removed from all the raw materials and the equipment used in the manufacturing of drugs.

He added that the prices of medicines could be reduced further when the high charges levied on medicines by the Food and Drugs Authority is reduced.

“We’re initiating moves to engage the FDA, because when I import medicines into Ghana I pay $3,600 for every three years on a product. So imagine if I have product line of 100, look at the amount I’ll pay at the end of every three years. If I import products from any of the Asian countries, I pay $20,000 as Factory Inspection fee. But countries like Nigeria, they pay $750 for product for five years, when in Ghana its $3,600. So we want to engage the FDA to see if they can reduce the charges or extend the period from 3 to 5 years, so we can be able to reduce the prices of medicines further than this.”