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Govt okays drug R&D incentive rejig

A government decree published in the latest issue of official gazette Magyar Közlöny gives the National Economy Minister, the National Resources Minister and the National Development Minister until September 30 to draw up a new incentive program for research and development by drugmakers.

 

The ministers are to establish the scale of the subsidies and funding from sources other than the national Health Insurance Fund while taking into consideration fiscal possibilities outlined in the Convergence Program, according to the decree.

 

Parliament in June approved an amendment that eliminates, with retroactive effect, tax preferences for R&D spending by drugmakers for the 2011 calendar year. The amendment also reduces the amount of R&D spending drugmakers may deduct from the sector tax they pay from 100% to 50% for the 2010 calendar year.

 

Lawmakers also raised the sector tax rate from 12% to 20% and doubled the tax drugmakers must pay for drug sales representatives to HUF 10 million per rep.