China to reduce taxes for rare-disease drugs

A total of 21 rare-disease drugs and four active pharmaceutical ingredients would be the first to enjoy China’s VAT reduction policy taking effect from March 1.

The new policy would lower cost for patients with rare diseases and encourage the development of the pharmaceutical industry.

According to the policy, the VAT rate for the import of rare-disease drugs will be reduced to 3 per cent.

The VAT for the production and sale, wholesale and retail of rare-disease drugs would also be reduced to 3 per cent from March 1.

Currently, China has more than 20 million people with rare diseases who have very few treatment options.

(Xinhua/NAN)