Traders call for re-evaluating medical equipment prices

Medical equipment importers have urged the government to adjust equipment prices in accordance with fluctuations in the dollar rate. 

They also proposed including VAT in the maximum retail price (MRP) or waiving it entirely. However, health professionals have expressed concerns that such moves could further increase healthcare costs.

In response, the Directorate General of Drug Administration (DGDA) has assured that no decision will be made that would put additional pressure on patients.

Representatives from the Medical Device Importers Association of Bangladesh and optical lens importers today (13 January) met with the Director General of DGDA and its officials.

Following the meeting, Md Amanullah Badal, managing director and CEO of Globex Marketing Company Ltd, said, "Our demand is not to raise prices but to adjust them based on fluctuations in the dollar rate. DGDA sets product prices, but without factoring in dollar rate changes, it's difficult for us to sustain our business."

He added, "VAT needs to be adjusted with equipment prices. If VAT increases now, the cost of cardiac stents and lenses will rise, ultimately burdening patients."

The DGDA had previously reduced the prices of 44 types of cardiac stents from seven manufacturers on 13 December 2023, with prices ranging from Tk2,000 to Tk56,000. The following day, the DGDA set prices for 129 types of lenses from 12 countries, requiring importers to supply these products at the determined rates.

Importers have raised concerns that both cardiac stents and optical lenses are entirely import-dependent, and the rising dollar rate has made it increasingly difficult to sell products at government-set prices. It will lead to the influx of substandard products through illegal channels, which is causing more harm to patients. 

Md Wasim Ahmed, acting president of the Medical Device Importers Association of Bangladesh, told TBS, "The drug administration has set the prices of our products assuming a dollar rate of Tk110. However, the official dollar rate is Tk120, while banks are charging between Tk125-127. We have requested a reassessment of the MRP in alignment with the dollar rate."

He further stated, "We discussed simplifying the registration process for medical equipment, reconsidering the MRP, and including VAT in the MRP. Currently, we have to pay 7.5% VAT, and if it increases, we will have no choice but to raise prices." 

Dr Akhtar Hossain, director of the DGDA, said, "Due to the rising dollar rate and VAT, the business community has proposed increasing the prices of medical equipment. We will forward their proposal to the ministry. The ministry will make the final decision.

 "The VAT increase was a government decision," he added, "but no actions will be taken that place undue pressure on patients." 

He also encouraged businesses to negotiate with suppliers to import sustainable medical equipment at lower costs.