Patients who rely on weight-gain drugs can now breathe a sigh of relief following the recent decision by the Tax Appeal Tribunal to prevent the Kenya Revenue Authority (KRA) from levying taxes on medications such as Tres Orix Forte. This specific drug, designed to aid individuals in gaining weight, was at the center of a legal battle as the KRA argued it was not a medical drug and thus should be subject to VAT and import duty. However, the tribunal sided with the pharmaceutical dealer, Harleys Limited, stating that Tres Orix Forte falls under the category of medicines exempt from these taxes.
Anorexia, a condition characterized by an abnormally low body weight and fear of gaining weight, can be treated using Tres Orix Forte. By stimulating the appetite and slowing down metabolism, this drug facilitates weight gain in individuals suffering from various forms of anorexia. The KRA's insistence that Tres Orix was not a medical drug led to a demand for additional taxes, but the tribunal ruled in favor of the pharmaceutical dealer based on the drug's registration and classification as a medicine under the Pharmacy and Poisons Act.
The significance of this ruling extends beyond the specific case of Tres Orix Forte, as it may impact the classification of other medications, multivitamins, and food supplements. While medications like Tres Orix are now recognized as exempt from certain taxes, the distinction between supplements and prescription drugs may become more blurred, affecting insurance coverage and taxation. Moreover, recent government measures to incentivize the pharmaceutical sector, including tax waivers for vaccine manufacturers, underscore the importance of regulatory clarity in the industry to attract investment and drive growth in drug production in Kenya.