SSC levy waived off on pharmaceuticals but not imported medical devices
While the government has waived off the 2.5 per cent social security contribution (SSC) levy on pharmaceuticals, the same concession was not given to imported medical devices.
Sri Lanka Chamber of Medical Devices Industry (SLCMDI), President Sundararaja Prabhu raised this concern at the chamber’s seventh annual general meeting held at the Hilton Colombo last week.
The 2.5 per cent SSC levy came into effect on October 1 on importers, manufacturers, service providers, wholesalers and retailers with an annual turnover of more than Rs. 120 million following the interim budget and cabinet approval.
Mr. Prabhu, in comments directed to Minister of Health, Keheliya Rambukwella who attended the event as the Chief Guest, raised concerns that the exchange loss for the tenders, additional new SSC levy and increase in the Value Added Tax from 12 to 15 per cent are adding more burden to the medical devices industry and it thus increases the costs to the patients. The medical devices industry is as equally important as the pharmaceutical industry, he stressed.
“All medical devices imported to Sri Lanka are as important as the pharmaceuticals imported. A medical device is key for diagnosis to start the treatment. A wrong reading of blood sugar or blood pressure or even a wrong report on blood test can lead to adverse treatments which can be fatal for the patients. Thus it demands for careful assessment of the product to register and market in the country,” he added.
Mr. Prabhu also mentioned that over 100 medical devices which are registered under National Medicines Regulatory Authority is VAT charged. The price regulated glucose strips which is used daily by patients is 15 per cent VAT charged. The price increase does not cover the VAT increase and thus the industry is facing issues to import and serve the market, he noted.
He also stated that securing and having skills on latest medical devices and technologies will give the medical professional, the hospital and also the country an advantage against the rest of the world. Technologically advanced secured health care system can also attract foreign exchange to countries like Sri Lanka with Medical Tourism.
People travel across boarders for surgical procedures, treatments and quite a lot for cosmetic surgeries. “Our health care system is one of the best in the region and our medical professionals have travelled overseas and are trained with technologically advanced surgical devices and medical equipment. If Sri Lanka can leverage the advantages and promote medical tourism, we all can be a contributor to our national economy. People travel to Singapore, Thailand, India and Turkey for surgical and plastic surgery procedures. Why not in
Sri Lanka?” asked Mr. Prabhu.
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