A group of nine health sector associations launched a manifesto on March 1, asking the state of São Paulo to overturn an 18-percent tax increase on medical inputs enforced at the beginning of the year. They claim the move could cause ripple effects throughout the country. Under the slogan “Now is not the time, São Paulo,” the group aims to stir public opinion against the tax hike, while working alongside state lawmakers to change legislation and challenging the increase in court.
São Paulo’s government has been in the hot seat since it decided to slash tax breaks as part of a BRL 7 billion fiscal adjustment plan. Several products that were previously exempt from tax — including foods, medicines, and medical inputs — now face an 18-percent rate of State Goods and Services Tax (ICMS).
The administration yielded somewhat in the face of public pressure, reinstating tax breaks on food products and generic medicines. However, health supplies such as wheelchairs, syringes, and chemotherapy medication are still subject to the hike.
And this ICMS increase comes at...
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