Pharmacy Daily | 500 tariffs to be abolished to lower costs

THE Australian Government announced yesterday that it will abolish almost 500 "nuisance" import tariffs from 01 Jul this year which may see the price of some pharmaceutical products reduced.

Four tariffs related to pharmaceutical products are slated for removal.

Two of them relate to "unmodified immunological products being polyethers in the primary forms", such as liquids, pastes, dispersions, solutions, and solids which include blocks of irregular shape and, lumps and powders, granules and flakes.

The other two tariffs relate to medical consumables and the appliances identified for ostomy use such as colostomy pouches.

Treasurer Jim Chalmers (pictured) said, "this is the biggest unilateral tariff reform in at least two decades".

"It will cut compliance costs, reduce red tape, make it easier to do business, and boost productivity."

A full list of tariffs to be abolished will be finalised and provided in the upcoming Budget.

In this one package of reforms, the Treasury stated it would abolish 14% of Australia's total tariffs.

Consultation on the proposed initial reforms is underway, with submissions open on the Treasury website and closing 01 Apr 2024.

The Treasury indicated that removing these tariffs will streamline approximately $8.5 billion worth of annual trade and save businesses over $30 million in compliance costs each year.

Chalmers mentioned, "Australian workers and businesses are not protected by these tariffs, but they still have to navigate the red tape involved and bear the costs of complying with the tariff regime".

"These reforms are an important step towards simplifying Australia's trading system and removing compliance costs for Australian businesses, particularly small to medium enterprises."

He commented that after successive trade agreements, most goods are now imported duty-free.

This now means that businesses spend time and money proving their imports are eligible for existing tariff preferences and concessions, a compliance cost often passed on to consumers, Chalmers explained. JG