China – China plans to reduce VAT for rare disease therapies

An executive meeting of China’s State Council outlined plans to reduce the value-added tax on domestic and imported rare disease drugs, improve cancer treatment and accelerate approval of cancer therapies.

Beginning March 1, the government will reduce the VAT on a « first batch » of 21 rare disease drugs and four APIs to 3% from 16%. The affected drugs were not identified.

China has historically shown a lack of focus on rare diseases, but that appears to be changing. In May 2018, Chinese government agencies, including the State Drug Administration (now known as the National Medical Products Administration) and the National Health Commission, published a national list designating 121 rare diseases. The list could improve review and approval times for drugs targeting the diseases (see « China Rare Disease List Could Promote R&D, Regulatory Filings »)…