The Hungarian government has decided to exempt prescription medicines from value-added tax (VAT), Prime Minister Magyar Péter announced on Facebook on Thursday.
“The government has made its decision: as promised, from September 1, prescription medicines will be VAT-free,” the prime minister wrote.
Until now, prescription medicines in Hungary have been subject to the reduced 5% VAT rate, regardless of whether they are covered by public health insurance, compared with the country’s standard 27% VAT rate.
The government’s decision is expected to reduce household spending on medicines. Cutting the VAT on prescription drugs to zero is likely to provide the greatest relief for patients who take multiple medications on a long-term basis or rely on newer-generation, higher-priced prescription medicines.
