Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan plans to lift price controls on medical devices and over-the-counter drugs. This was announced on 4 July during an open dialogue with business representatives in the medical and pharmaceutical sectors by Abdulla Azizov, Director of the Pharmaceutical Industry Development Agency at the Ministry of Health.

During the dialogue, a business representative noted that the established markup limit contributes to the smuggling of drugs and medical devices, and after the VAT exemptions are lifted, the situation may worsen. He also pointed out the difference in sales volumes: drugs are sold in millions of units, while medical devices are sold in quantities of around 1000 units.

Since 2017, Uzbekistan has set a maximum markup of 15% of the base cost for wholesale trade and 20% of the purchase cost for retail trade. In 2020, a reference pricing system was introduced where drug prices are registered based on comparisons with prices in different countries. The state regulator sets a threshold market price based on these comparisons, which sellers are prohibited from exceeding.

Abdulla Azizov mentioned that the proposal to lift price controls is already included in a presidential decree project under review in the Presidential Administration.

"We have already coordinated this with the Ministry of Finance. The 15-20% markup will remain only for prescription drugs," he said.

According to him, the markup limit will be lifted for over-the-counter drugs and medical devices. "Everyone has given their approval, we just need to finalize 1-2 points. I expect the decree to be issued within 2-3 weeks," Azizov emphasized.

The business representative also proposed changes in taxation to create equal market conditions for all. Currently, many private clinics pay a turnover tax of 4% and try not to exceed a turnover of 1 billion Uzbek soums.

Abdulla Azizov mentioned that this proposal is also included in the presidential decree project. It is planned that from 2025, all companies involved in medicines and pharmaceutical products will become VAT payers.