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China Issues Guidance on VAT Reduction for Certain Drugs

China issued guidance on its value-added tax “reduction policies” for certain anti-cancer and rare disease drugs, a Sept. 30 notice said, according to an unofficial translation. China said it will reduce VATs on those imported drugs by 3% and will allow “general VAT taxpayers” to “produce, sell, wholesale and retail” the drugs. The notice also contains instructions on how to declare the imports with Chinese customs and a list of drugs that qualify.