[e-drug] Pakistan: Sales Tax on Medicines (cont)

["Peter R Mansfield" <peter@healthyskepticism.org>]

E-drug: Pakistan: Sales Tax on Medicines (cont)
--------------------------------------------->

Zafar correctly requested replies direct to him but posting of this reply on
e-drug will save other Australians from spending time finding the same
answer.

Zafar,
In Australia prescription only pharmaceuticals and many non-prescription
pharmaceuticals are exempt from the GST.

The official answer to your question (with 2 explanations that I have added
in brackets []) is:

"In principle, drugs and medicines that contain ingredients which make it
necessary to restrict their supply will be GST-free. Drugs and medicines
that are sold without restriction won't generally be GST-free.

Drugs and medicines that are only available on prescription will be
GST-free. Many of these products will be labelled as "S4" or "S8"
medication. This includes such things as medication for arthritis, or
medication for the treatment of depression.

Pharmaceutical Benefits Scheme and Repatriation [war veterans]
Pharmaceutical Benefits Scheme drugs and medicines will also be GST-free,
where they are provided on prescription.

Drugs that can only be sold under the advice of a pharmacist, or restricted
to sale at pharmacies, will also be GST-free. These products include pain
relief products, antihistamines for seasonal hay fever, insulin, asthma
inhalers, tinea creams, day and night flu tablets, and medicated cough and
cold products. Many of these products will be labelled as "S2" or "S3"
medication.

Products that do not contain medicated ingredients and are sold without
restriction will generally be subject to the GST (eg non-medicated throat
lozenges, non-medicated eye drops, and most vitamins and minerals).

Finally, small packets of pain relief products like Panadol [the leading
Brand name for paracetamol = acetaminophen] and aspirin will also be
GST-free - even where they are sold in supermarkets or general stores."

the URL for that is:
http://www.health.gov.au/gst/healthqna.htm

That web page also lists all the medical services, aids and supplies that
are also GST free.

regards,
Peter

Dr Peter R Mansfield
GP and consultant on marketing and appropriate therapeutics.
Visiting lecturer, Universities of Adelaide, Flinders, Queensland, South
Australia
Director, Healthy Skepticism
Research and education about the impact of marketing on health care.
peter@healthyskepticism.org
www.healthyskepticism.org
34 Methodist St, Willunga SA 5172 Australia
ph/fax +61 8 8557 1040
"Peter R Mansfield" <peter@healthyskepticism.org
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