Life-saving drug to get pricier

It's a life-saving drug often prescribed by doctors for patients with serious kidney and liver problems and also for newborns with a blood-related disease.

But to get this already pricey drug called albumin, patients will have to pay more, thanks to the imposition of 15 percent value added tax (VAT) on it on top of a 4 percent advance income tax (AIT) and 5 percent advance trade VAT (ATV).

While proposing a uniform 15 percent VAT in his June 1 budget speech, Finance Minister AMA Muhith said the government would exempt 93 life-saving drugs from 15 percent VAT.

But in reality, a life-saving drug like albumin is going to get pricier due to the imposition of 15 percent VAT.

Albumin belongs to the group of medicines known as plasma substitutes. It helps increase the volume of blood in blood vessels by drawing fluid from the body into the vessels.

Albumin solutions are used to treat patients with serious liver diseases because of its ability to contain excess bilirubin, a substance produced by the liver, and increase the volume of blood.

In case of acute nephrosis (a type of kidney disease), albumin solutions are sometimes given to patients to help reduce the edema (an abnormal build-up of serous fluid between tissue cells).

The drug is also used before blood transfusion in treating newborns with hemolytic disease, a disorder in which red blood cells are destroyed.

Maher Khan, son of a terminally ill patient in the capital, recalled how albumin helped his ailing mother fight kidney disease.

“This is already a pricey medicine that patients -- rich or poor -- need to buy to save their lives. This is ridiculous that the government is imposing VAT on such a life-saving drug."

He feared that a further increase in the drug price would erode people's access to the life-saving drug.

Samiul Haq, son of a liver cirrhosis patient in the city, thinks the imposition of the 15 percent VAT on the drug would be an extra burden to bear.

His mother needs to be administered albumin sometimes even three times a day.

Mizanur Rahman, managing director of Shuvro Limited which imports “Albutein” (of albumin genre), went to Dhaka Customs House to get his shipment of this life-saving drug released on Tuesday, four days after the budget was placed in parliament. 

Officials there asked him to pay 15 percent VAT on top of 9 percent AIT and ATV he has been paying for all these years for the imported drug manufactured by GRIFOLS, a world leader in producing blood-plasma products.

He argued with them, referring to the manufacturer's documents showing albumin as a life-saving drug. He also mentioned the finance minister's declaration of VAT-exemption for life-saving drugs. But it all went in vain.

Yesterday, he finally got the shipment released upon payment of 24 percent taxes (VAT, AIT and ATV).

"There is no such tax on drugs anywhere in the world. In our neighbouring country India, Albumin is also imported from abroad and there is no VAT on it. If its price soars here because of VAT imposition, cheaper alternatives would be smuggled in from India and the government would lose revenue," said Mizanur.

Dr Fahmida Naz, assistant professor at state-run Mugda Medical College Hospital in the city, said albumin is a costly medicine which is used mostly for critically ill patients. 

An increase in its price would add to the financial burden of patients, she added.

According to medicine market sources, each 100ml bottle of albumin now costs up to Tk 7,400. But the price may go up by Tk 1,000 or more unless the government exempts this life-saving drug from VAT.

The Drug Administration is supposed to provide the industry with a list of VAT-exempted life-saving drugs, but that has not happened yet.

In the meantime, importers of life-saving drugs like albumin are being asked to get their shipments released upon paying 15 percent VAT. 

Contacted, Barrister Jahangir Hossain, member of the National Board of Revenue (NBR), said the NBR would look into the issue.