According to the Government, the clawback tax generated revenues of 282 million lei (EUR63.2 million) in the first quarter of the year, which will be used to pay off the bills that have not been registered.

Authorities also pledged to improve the mechanism computing the tax to ease its implementation.

Romanian drug producers said Monday they might withdraw products from the discounted and free medicine list if the Government fails to revise the clawback tax.

According to the Association of Romanian Producers of Generic Drugs (APMGR) and the Romanian Association of International Drug Producers (ARPIM) negotiations with the ministries of Finance and Health on suspending the payment of the tax for the first quarter of 2012 and revising it ended in no result.

The clawback tax for the first quarter of 2012 stands at about 35% of producers’ drug sales, almost double the tax for the fourth quarter a year ago.

The problems that caused the increase are a misevaluation of the real medicine consumption in 2011 (RON5.7 billion instead of RON6.8 billion) and the inappropriate formula to compute the tax, said producers.

Health Minister Vasile Cepoi said earlier Monday ministry officials are trying to find a way to solve the problems caused by charging the clawback tax to drug producers, a situation that could seriously affect medicine supplies.

The clawback system was implemented at the end of 2009 and stated all medicine producers must contribute 5% to 11% of drug sales to finance the public healthcare system.

Pharmaceutical companies complained about the consequences of the tax and the Government admitted the system proved inefficient, as it collected only 5% of the sum expected to be raised.

Later, authorities decided drug producers would pay a quarterly tax computed based on a formula that considers the value of medicine consumption.

Players in the pharmaceutical industry said the new system is still precarious as the clawback tax also applies to the value added tax on drug sales, which breaches the Tax Code. (EUR1=RON4.4641)