Tax Exemption Eyed to Help Contain Influenza A

Individuals concerned about the rapidly spreading influenza A here will be able to receive either anti-viral vaccine or treatment at a cheaper cost later this month.

This follows government steps to lift taxes on both imported and locally manufactured anti-influenza medical goods.

The Ministry of Strategy and Finance said Sunday that it would temporarily exempt foreign and domestic flu vaccines and treatments from value-added tax (VAT) and tariffs until the end of 2010 to help more concerned people obtain medical treatment at lower costs and prevent the spread of the deadly epidemic.

Currently, importers of H1N1 vaccines from abroad are subject to an 8-percent rate and have to pay an additional 10-percent VAT, making flu-related medical costs substantially higher.

The ministry plans to submit the changes in tax-related ordinances to a Cabinet meeting on Sept. 15. If approved, they will go into effective immediately.

The government is scrambling to secure as many influenza A vaccine doses as possible in preparation for a possible flu pandemic this fall and winter. It has ordered 10 million doses, with additional purchases planned next year.

It aims to vaccinate 13 million people or 27 percent of the population by February 2010.

Since the first case of the disease was confirmed in early May, four H1N1 infected patients have died, with more than 4,000 falling ill from the disease.

Additionally, patients suffering from seven illnesses, including AIDS and Wilson's disease, will be able to receive treatment at cheaper costs as tariffs levied on imported medicines and other medical treatments will be abolished.

The government expects the tariff exemption to help about 6,000 patients across the nation save an average 500,000 won per person annually.

Source