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Will there be a new tax on drug advertising?

Will there be a new tax on drug advertising?

The Ministry of Health (MZ) is considering a new tax modelled on the Italian Grattini tax. It would be imposed on the marketing activities of pharmaceutical companies. According to the assumptions, 5% of these companies’ advertising and event expenses would be allocated to the budget of the emerging Medical Research Agency (ABM), according to the information provided by the Polish Republic.

ABM is to be the body that will coordinate non-commercial clinical trials, non-commercial medical technology research and observational research. According to the draft ABM Act, which was published in mid-September, the Agency will be financed from a special purpose grant from the state budget and 0.3% of NFZ revenues. In 2019, ABM’s budget will amount to PLN 50m, but in 2029 it will increase to PLN 1.14bn.

According to lawyers questioned by the newspaper, legal changes and a more detailed definition of advertising are necessary before a tax can be introduced. Currently, any activity that results in an even indirect increase in the sale of medicinal products may be considered an advertisement. This may result in the fact that it will be subject to taxation in the future.

Update

MZ denied that it was conducting analytical work on the introduction of the tax. Such information was provided on 31 October by the Polish Association of OTC Drug Manufacturers (PASMI).

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