By Rizal Obanil
The Pharmaceutical and Healthcare Association of the Philippines (PHAP) made an appeal on May 26, Tuesday, for the government not to implement a price cap on medicines next month.
PHAP, in a statement, said that they believe that the price cap will cause a drop in government revenues and industrial sales. The price cap is set to be implemented starting June by virtue of an Executive Order (EO).
The group believes that the EO “will not benefit the public in the end because of the formula used to compute the price adjustments.” The government, since the onset, has been implementing measures to regulate the prices of essential products and basic needs like medicines.
PHAP believes that EO 104 which aims to put a maximum retail price on certain medicines might cause the government to lose around P28 billion in revenues from customs duties, value added and corporate taxes.
Pharmaceutical companies earlier in the year warned that they may opt not to sell certain medicines, especially imported ones, if the price cap pushes through.