RELIEF: TAXES DROPPED ON THIS ESSENTIAL ITEMS

The cost of urine bags, adult diapers and artificial breasts will fall after the Treasury removed value-added tax (VAT) on the medical items, offering relief for patients with life-threatening diseases like cancer and the elderly who require specialised care.

The products currently attract VAT at a rate of 16 percent besides other taxes.

Treasury CS Ukur Yatani proposed the scrapping of the tax, saying it would boost patients’ access to healthcare.

“To further reduce the healthcare cost, I propose to exempt from VAT medical oxygen supplied to registered hospitals, urine bags, adult diapers, artificial breasts, and colostomy or ileostomy bags for medical use,” said Mr Yatani in his budget speech.

Colostomy and ileostomy bags are used by patients who have undergone surgery on the colon, and small intestines.

They are mostly imported and sold in select pharmacies and cost about Sh1,400 and Sh100 per bag for reusable and disposable ones respectively, underlining the financial burden to the patients.

The bags are mostly used by colon and rectum cancer patients, those suffering from Crohn’s disease and bladder disorders. In addition, users have to buy a base that costs about Sh700 which is attached to the pouch and used up to four times or less if it soils.

A reduction in the cost of adult diapers will also save families taking care of the elderly up to Sh35,000 a month.

Breast cancer survivors have also been spending over Sh25,000 on artificial breasts after surgery, with a majority of the poor patients opting to stitch lost-cost thread ones.

The few pharmacies that stock these medical products have worsened the financial burden as consumers have to travel to Nairobi to make purchases.

To promote the manufacturing of pharmaceutical products, Mr Yatani also proposed to exempt inputs and raw materials imported by manufacturers from payment of Import Declaration Fees and Railway Development Levy.

“This will encourage investment in the health sector and improve access to affordable health care services,” said Mr Yatani.

This is expected to lower the cost of crucial medicines, he said.

Sourced from Business Daily