Generic drugs may become 7% cheaper in São Paulo with a bill that provides for a reduction in ICMS tax
The bill sent by the São Paulo government to the State Legislative Assembly, which provides for a reduction from 18% to 12% in the ICMS tax on generic drugs, should reduce the amount paid by consumers for these drugs in São Paulo pharmacies by 7%.
In some cases, however, the reduction may reach 9%, as is the case with Losartan, a product used to control hypertension that is currently sold at a maximum price of R$10.94 in pharmacies and may cost R$9.60.
An unprecedented survey by PróGenéricos indicates that the category has a 25% market share in the state and generated R$4.8 billion in sales between September 2014 and September 2015. The state accounts for 26.1% of the pharmaceutical sector's revenue in the country, which generated R$72 billion during the period.
As is already the case in other states such as Minas Gerais and Rio de Janeiro, the reduction in ICMS has been fundamental in promoting greater access to medicines. “At a time when it is happening, in the midst of a serious economic crisis, it becomes even more beneficial. People who are medicated regularly and correctly also represent a reduction in the social cost to the state,” analyzes Telma Salles.
In PróGenéricos' view, reducing the ICMS tax on generic drugs is fair, as it benefits all consumers in the state, especially those with chronic diseases. "For drugs that are used continuously, this measure will effectively provide access and improve quality of life; there is no one who does not need medicine at some point in their life," he says.
The executive states that it would be even more beneficial if this new ICMS index were extended to all medicines and not just generics. "Although there are generics for the treatment of approximately 90% of the diseases that most affect the population, there are still many treatments conducted with products for which generics are not yet available.
In any case, “we consider the ICMS reduction measure for generic drugs to be an excellent start toward implementing measures that will lead to the effective and much-desired tax exemption for medicines,” he concludes.
PróGenéricos simulated how prices would be affected by the new ICMS tax index, as proposed by the São Paulo state government's bill.
Best-selling generics
PMC ICMS 18%
R$
‘PMC ICMS 12%
R$
Losartan 50 mg, box of 30
10,94
9,60
Sildenafil 50mg box of 2
12,57
11,61
Dipyrone Sodium 500 mg/drops 20 ml
4,88
4,51
Atenolol 50mg box of 30
14,17
13,20
Hydrochlorothiazide 25 mg, box of 30
2,58
2,40
Enalapril 10 mg, box of 30
17,72
16,51
Metformin 500 mg box of 30
4,19
3,90
Paracetamol 750 mg box of 20
8,58
7,93
Nimesulide 100 mg, box of 12
18,68
17,41
Simethicone 75 mg drops 15 ml
11,11
10,27