Please login to the form below

Not currently logged in
Email:
Password:

Belgian tax breaks for pharma

The European Commission has approved the introduction of reductions and exemptions on the tax paid by pharma companies in Belgium.

The European Commission has approved the introduction of reductions and exemptions on the tax paid by pharma companies in Belgium.

The changes will represent an annual budget of around EUR47m. The Commission has concluded that, following adjustments made by the Belgian authorities, the measures are compatible with the EU.

Competition Commissioner Neelie Kroes said: "As shown by the sector inquiry into the pharmaceutical industry, launched on 16 January, I am determined to ensure that competition plays a full role in the pharmaceutical sector. The detailed review carried out by the Commission indicates that the Belgian tax reductions, in particular those granted for research, are not against EU interests."

In Belgium pharma companies contribute around EUR300m a year to the financing of the health system, through a tax calculated on the basis of sales of reimbursed medicines. In November 2005, the Belgian government decided to grant tax exemptions and  reductions, in specific circumstances, in order to assist pharma.  First it granted an exemption for orphan medicinal products, for medicines which are reimbursed at a low rate (such as contraceptive pills) and for products derived from blood donated by unpaid volunteers.

It then granted a tax reduction to pharma companies that invest in R&D or that reduce their marketing budgets voluntarily, and also to small companies that invest in the production of medicinal products. 

The reforms were adopted on June 10 2006 and have been amended twice, in December 2006 and April 2007. However, they are yet to come into force because the Belgian authorities have been waiting for approval by the Commission.

30th January 2008

Share

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
Bedrock Healthcare Communications

Bedrock Healthcare Communications is a privately owned, award winning communications agency that creates and delivers highly effective, insight driven medical...

Latest intelligence

women
Advancing women in healthcare
Fostering the next generation of leaders...
The Challenges Of UX In Healthcare: Technology To Change Lives
Blue Latitude Health Director and Head of Customer Experience Elisa Del Galdo explores the latest digital healthcare trends and reveals the innovations changing the sector today....
It’s all about patient outcomes… right?
Lessons from history: a design thinking perspective...

Infographics