Pharmaceutical society of Ghana welcomes move by government to strengthen pharmaceutical sector

The Pharmaceutical Society of Ghana (PSGH) welcomes the government’s efforts to strengthen pharmaceutical care and local pharmaceutical manufacturing in Ghana as was outlined in the 2022 budget statement presented to parliament on Thursday 18th November 2021.

The PSGH believes and maintains that the pharmaceutical sector remains one of the most well-organized sectors to not only lead the industrialization agenda of Ghana but become a model of what ideal pharmaceutical care looks like.

As was indicated, plans are in progress to provide pharmaceutical care electronically, through the e-pharmacy project. This will enable more people in more places to access pharmaceutical services using their electronic devices such as mobile phones to position us on the path to attaining Universal Health Coverage (UHC).

E-levy

The PSGH appreciates and commends the government for the efforts being made to widen the tax net including the introduction of the e-levy. However, the PSGH believes that the total charges on e-transactions especially mobile money transactions should be reviewed downwards.

The success of the proposed e-pharmacy project will be dependent on the integration and use of other electronic platforms like the use of electronic payment systems including mobile money payment to pay for services. This is why the PSGH is concerned about the 1.75% levy on electronic transactions above GHS100 in addition to the network/system imposed charges (usually between 1%-2%).

It is the belief of the PSGH that this will hamper the development and growth of electronic services including e-pharmacy in Ghana and has to be reviewed taking into consideration what has happened in other countries that introduced similar e-levies and taxes.

Mobile money transactions currently attract charges of about 1% to 2% to both the sender and receiver.

The PSGH proposes that the e-levy should be reduced to below 1% while the total charges by the telcos are also reduced to below 1% to those making mobile money transactions to accommodate the introduction of the e-levy.

Benchmark values

The local pharmaceutical sector is making gradual and steady progress in the development of local expertise and capacity in the manufacturing of the medicines needed in the country. Local pharmaceutical manufacturing accounts for just above 30% of the country’s requirements.

This means that approximately 70% of medicines have to be imported. The restrictions imposed on the exportation of medicines by many countries globally as a result of the COVID-19 pandemic means we have to accelerate the development of the local pharmaceutical industry while we continue to import finished pharmaceutical products needed for the health and well-being of our citizens.

Policies such as restriction of the importation of some selected medicines for which we have local expertise and capacity to manufacture as well as the waiver of VAT on some selected imported pharmaceuticals are welcome.

However, it is the view of the PSGH that restoration of the full benchmark values for the purposes of payment of tax will lead to an increase in the prices of medicines that are imported which are not VAT exempted. The PSGH, therefore, calls on the government not to include pharmaceuticals in the imported items that will have the full benchmark values restored for the purposes of payment of import duties.