Medical equipment rental rate hike could go from 3.65% to 26.5%, hurting small hospitals and municipalities
The ongoing tax reform in Brazil could cause a significant increase in the prices of medical procedures and tests, due to the increase in the rates for the rental of medical equipment, which currently range between 3.65% and 9.25% of the PIS/CONFINS and could reach 26.5% of the new VAT, warns the Brazilian Association of Medical Equipment Rental Companies (ABLEM) on the effects of this change on the sector.
In presenting the report on tax reform, ABLEM expressed concern about the exclusion of medical equipment rental from the tax reduction, which only benefits the sale of these items.
“This omission could harm small hospitals and municipalities that rely on leasing to access high-cost medical devices,” says Eric Varga, CEO of Grupo Blue Health and representative of ABLEM.
He explains that about 70% of the equipment used in in vitro diagnostics is rented. “The lease offers flexibility, includes maintenance and eliminates equipment downtime,” he emphasizes.
He also pointed out that in segments such as video surgery, rental already represents approximately 30% of the market.
The rent increase to 26.5% could lead to a significant increase in operating costs, especially hurting public and philanthropic hospitals.
“Today, renters pay between 3.65% and 9.25% in PIS/COFINS. With the new rule, the rate would rise to 26.5%, an increase that varies from 13pp to 17pp,” explains Varga.
The association argues that the change violates constitutional amendment 132, of 2023, which does not distinguish between the rental and sale of medical equipment. The organization also points out that the current law can give rise to legal disputes and double the charges on rentals.
ABLEM is now seeking parliamentary support to push for changes in tax legislation to benefit the medical equipment rental industry.
“We are in contact with several parliamentarians and we believe that this change is essential to ensure continued access to essential medical equipment for public health,” concludes Varga.
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Source: Terra
Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.
