The introduction of the Good Manufacturing Practice (GMP) standard by Bulgarian pharmaceutical companies may be hampered by the introduction of Value Added Tax (VAT) on medicines as of January 2002. The GMP standard is to become obligatory at the beginning of 2003. It will improve the quality of the Bulgarian medicines. Its implementation will cost to the drug producers tens of millions of dollars. The amendments to the VAT Act will lead to a rise in medicine prices from 10% to 30%. The move will also trigger a decrease in consumption. Drug producers fear that this will reflect negatively on investments in the field. The prices of imported medicines will equal the prices of those produced in Bulgaria.