Patients of Ukraine: Thousands at Risk of Losing Essential Medications

The Patients of Ukraine charitable foundation, representing the interests of over 4.5 million patients with severe chronic illnesses, has raised the alarm about a critical situation caused by the termination of the tax exemption for the import of medicines and medical devices purchased with state funds since January 1, 2024.

The decision to tax such goods has had serious consequences, jeopardizing the health and lives of millions of patients in Ukraine.

We are observing a significant decrease in the volume of centralized procurement of medicines due to taxation. Even in the best of times, the need for medicines in Ukraine was not fully covered by the state budget.

According to the Ministry of Health, in 2024, about 30% of medicines from the estimated required amount will not be purchased. This is especially true for people with chronic and severe diseases who fight for their lives every day. For many of them, the lack of medicines means not just a deterioration in their condition but a real threat to life.

Now, an additional burden in the form of a 7% VAT further exacerbates this problem, significantly reducing the number of people who will receive the necessary treatment. For example, according to our calculations, the amount spent on paying the aforementioned tax could cover the annual need of cancer patients for drugs – 10 thousand patients with the drug Abiraterone, 4.5 thousand patients with the drug Trastuzumab, and over 2 thousand patients with the drug Nilotinib.

Moreover, taxation upon import into the customs territory of Ukraine of medicines and products purchased by the State Enterprise of the Ministry of Health creates an absurd situation where state funds are spent on paying taxes into the state budget, which is essentially an artificial circulation of funds without any real benefit for patients or the state as a whole. In addition, this situation creates another serious problem – the migration of patients abroad. People who cannot get the necessary treatment in Ukraine are forced to go to other countries in search of medical care.

Such migration has a negative impact on Ukraine’s economy. Along with patients, the country loses qualified personnel who could work in Ukraine, contribute to its development, and fill the economy.

We insist that when forming the State Budget of Ukraine for 2025, additional expenditures of the Ministry of Health under the Program classification of expenditures and financing of local budgets 2301400 “Ensuring medical measures of certain state programs and complex programs of a programmatic nature” be provided to cover VAT. This will ensure that patients have access to the necessary medicines and medical devices.

Also, considering all of the above, we call for the abolition of taxation (7% VAT) of medicines and medical devices purchased at the expense of the state budget, in order to optimize the use of the budget and ensure the availability of treatment for citizens. We also ask the Ministry of Finance of Ukraine to actively advocate with our international partners for the need for these changes. This will help to avoid misunderstandings about why the state is creating obstacles to access to medicines for its citizens.

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