Table 1

Summary of medicines pricing policies introduced between 2012 and 2017

Policy/yearAimType of medicinesPharmaceutical sector affected/beneficiary
HCSCMP (2012)To address numerous challenges in the supply chain, for example, overlapping tasks, high costs and payment delays in procurement.Essential medicinesSupply chain/public sector
Framework Contracting (2012)To outline a centralised procurement process for bulk purchase and negotiation of medicine prices.High demand essential medicinesSupply chain/public sector
VAT exemption for medicines importers (2017)To remove build up costs due to taxes392 selected essential medicines (imported finished products)Importation/cost build-up due to taxes.
Importers agreed to reduce prices of essential medicines by a minimum of 30%.
Public and private sector
VAT exemption for active pharmaceutical inputs (API), manufacturing inputs and packaging materials (reviewed in 2012 and 2017)To remove the build-up of costs due to taxes, and ring-fenced some selected essential medicines for local manufacturing552 (active ingredients, and selected inputs) for essential medicinesLocal manufacturing/cost build-up due to taxes
Private
  • HCSCMP, Health Commodity Supply Chain Master Plan; VAT, Value Added Tax.