China releases list of rare disease drugs with reduced VAT

China’s ministry of finance revealed a list of 21 rare disease drugs and four APIs which will be eligible for a reduction in value-added tax beginning March 1.

The government will reduce the VAT on the drugs to 3% from 16%. An executive meeting of China’s State Council described the drugs selected for VAT cuts as “the first batch” when it announced the policy on Feb. 12 (see "China to Cut VAT for Rare Disease Drugs")...