Calls to make the healthcare sector one of the main budget priorities

The Latvian Association of Pharmaceutical Manufacturers (LZR) is urging the government to make healthcare one of the main priorities in the planning of the 2026 state budget, LETA reported from the association.

To improve both the physical and financial accessibility of medicines, LZR believes that the list of reimbursable drugs and the funding available in the system should continue to be expanded, and that the value-added tax (VAT) rate on medicines should be reconsidered.

The association notes that public health expenditure per capita in Latvia remains among the lowest in the European Union (EU). At the same time, out-of-pocket expenses for residents significantly exceed the EU average, primarily due to the high VAT. In Latvia, prescription medicines are taxed at 12% VAT, while in neighboring countries it is much lower — 9% in Estonia and 5% in Lithuania.

LZR also points out that the funding allocated to Latvia’s reimbursable medicines system is still lower than in Lithuania and Estonia, meaning that many residents must pay themselves for medications that are covered by the state in neighboring countries. While around 80% of all prescription medicines are included in the EU reimbursable medicines list, in Latvia this percentage is significantly lower.