China Cuts VAT for Second Batch of Anti-Cancer and Rare Disease Drugs

In the second batch of anti-cancer and rare disease drugs eligible for the value-added tax (VAT) reduction policy announced recently by several government departments, general VAT taxpayers are subject to a 3% VAT for the production, sale, wholesaling and retailing of the relevant drugs starting from October 2020. Imports of these drugs are also eligible for the 3% reduced import VAT rate.

Anti-cancer and rare disease drugs include preparations of anti-cancer and rare disease drugs and their ingredients approved for registration by the National Medical Products Administration.

Full details can be found in Announcement No. 39 [2020] of the Ministry of Finance, General Administration of Customs, State Taxation Administration and National Medical Products Administration.

Source: Ministry of Commerce, General Administration of Customs