Under the plan, it is raising the price preference to locally-manufactured medical supplies from the current 15 to 25 per cent.

 

"If a locally-produced medicine is sold at Sh125 and the imported one at Sh100, the government will pick Tanzanian product to promote the local pharmaceutical factories," Ms Ummy Mwalimu, The minister for Health, Community Development, Gender, Elderly and Children, said.

 

She further noted that the government was serious on promoting local pharmaceutical industries.

 

“I have already submitted the proposal to increase price preference to the minister for Finance and Planning,” said Ms Mwalimu at the manufacturers and suppliers annual general meeting.

 

According to Tanzania Revenue Authority, pharmaceutical manufacturers also pay 20 per cent of income as corporate tax instead of 30 per cent paid by other companies.

 

Tanzania’s annual pharmaceutical procurement increased by 20 per cent to hit $1 billion (Sh2.25 trillion) in 2018/19 as the government deepens availability of medicines in the country.

 

According to MSD Finance and Planning director Sako Mwakalobo, this local market figure rose from $800 million in the previous year.

 

The government changed its procurement strategy from using supplier agents to buying directly from manufacturers since 2016.

 

Ms Mwalim, said, “After doing away with the middle men, we have seen cost reduction by an average of 40 per cent. We are not going to change this strategy as it helps the government save about $2 million per year.”

Source : newzmart