Minister Emil Ceban opposes 20% VAT on medicines, citing unpreparedness
The Ministry of Health expressed a negative view on the proposal to implement a 20% VAT on medicines, as outlined in the draft of the new budgetary-fiscal policy for 2027. Minister Emil Ceban cautions that this measure could lead to a series of price increases and place additional strain on the medical system in the Republic of Moldova.
Emil Ceban expressed serious concerns on Monday, June 22, during the "La 360 de grade" program on Radio Moldova about the impact of the proposed reform on the medical system. He stated, "This reform will destroy the medical system and lead to a series of price increases. The Republic of Moldova is not ready for something like this; our health system is vulnerable. Hospitals will not be able to cope, and there are very high risks involved."
Ceban emphasized that the current health system is ill-equipped for such a fiscal reform, particularly highlighting the vulnerabilities it presents for individuals dependent on subsidized medications. "We have a large number of people who are unemployed, sick, elderly, or living alone, and our health system has a lot of work to do," he added.
The minister raised concerns that an increase in Value Added Tax (VAT) could diminish the purchasing power for medicines and hinder compensation options for patients with chronic illnesses and other vulnerable groups. He highlighted that the health insurance system is already under significant pressure, and such measures could disrupt plans to expand services and raise salaries in the medical sector.
"We will lose the purchasing power for medicines and medical supplies for those with health conditions. We also aim to raise salaries. In recent years, especially since COVID, we have seen salary increases, and we want to continue that progress. That is why we are still managing this expense through the National Insurance Company," Ceban explained.
The draft budgetary and fiscal policy for 2027 proposes standardizing VAT by eliminating the reduced rates currently applied in various sectors. These changes would impact areas including food, medicines, e-commerce, the HoReCa industry, automobiles, and energy resources.
Minister of Finance Andrian Gavriliță also commented on the issue, stating that any additional revenue generated from this amendment would be allocated exclusively to the healthcare sector.
