AEGiS-PRn: African Nations Should Drop Debilitating Taxes and Tariffs on Medicines PRNewswireImportant note: Information in this article was accurate in 2005. The state of the art may have changed since the publication date.
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African Nations Should Drop Debilitating Taxes and Tariffs on Medicines

PRNewswire - November 21, 2005


-- Failure to Compromise on Agricultural Subsidies in the WTO Gives African Nations Leadership Opportunity

WASHINGTON, Nov. 21 /PRNewswire/ -- With the failure of the European Union, specifically the French to greatly reduce their agricultural tariffs, the African Union has a rare moment to assert its commitment to the global trading system and the fight against pandemic diseases by abolishing taxes and tariffs on life-saving medicines and medical devices.

The impact of HIV/AIDS, malaria and tuberculosis on the African continent is unmistakable. For years, Africa has struggled to fight disease with the misguided policies of international donor agencies and a medical infrastructure that is non-existent.

"The African Union has a real opportunity to give immediate relief to the people of Africa by eliminating these burdensome tariffs," said Todd Kruse, co-founder of the Uhuru Policy Group, which is a member of the No Taxes on Drugs and Devices Initiative. "The elimination of the medicine tariffs would be welcomed by the international community, especially the United States, which has been unsuccessful to date in lobbying the European Union to drop their policy of agricultural subsidies."

Many African nations impose highly regressive taxes, tariffs and duties that reach into the double digits on the import of essential items ranging from drugs to bandages and other essential but basic medical supplies. African nations like the Central African Republic and Ghana have an average tariff, tax and duty rate of 24 and 23 percent respectively, thus diverting limited funds intended for patient treatment and the supply of essential medicines to government bureaucracies.

The Uhuru Policy Group

Uhuru means "Freedom" -- freedom for all Africans from entrenched government bureaucracies, negative thinking, and actions that undermine the rule of law -- that is our mission and sole objective for the Cradle of Civilization. We will educate, motivate, and ultimately liberate all Africans from historic poverty and failed governmental systems via free market principles and the rule of law not the cult of personality. Our mission is clear for Africa -- wealth and health for the entire continent versus the neo- imperialism of international aid.

The No Taxes on Drugs and Devices Initiative (NtDDi)

No Taxes on Drugs and Devices Initiative (NtDDi) is an international coalition of health and development experts. The group's goal is to shed light on the practice of imposing burdensome taxes and tariffs on medicines and medical devices in developing nations worldwide. Earlier this year, NtDDi coordinated a study for the first time that calculated the current tax and tariff levels on essential medicines and medical devices in the developing world. The study, Taxed to Death: The role that taxes, tariffs and regulations play in denying essential medicines to patients in the developing world, authored by Dr. Roger Bate, visiting fellow, American Enterprise Institute and Richard Tren, director, Africa Fighting Malaria found that combined taxes in some cases reached more than 61% and regular levy charges between 40 - 60% on medicines, gauze, bandages and other medical needs. The paper found Brazil one of the world's biggest offenders, maintaining average tariffs on essential medicines of 38%. One of the paper's more noteworthy findings was its regression analysis which found that a 1% decline in import tariffs could increase a population's access to medicines by just over 1% in the developing world.

Contact: John Procter -- +1-202-772-2179 -- jprocter@dcgpr.com

SOURCE Uhuru Policy Group

Web Site: http://www.uhurugroup.com


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