Added sales tax on medicines be abolished

 
January 24, 2022

Islamabad: The government should immediately abolish the 17 per cent sales tax imposed on medicines and raw materials used in the manufacturing of medicines in the country, said Executive member of...

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Islamabad: The government should immediately abolish the 17 per cent sales tax imposed on medicines and raw materials used in the manufacturing of medicines in the country, said Executive member of Pakistan Pharmaceutical Manufacturing Association (PPMA) Malik Arshad, says a press release.

In a statement, Malik Arshad, executive member of PPMA and chairman W-Group of Industries said that in mini-budget 17 per cent increased sales tax on raw materials used in manufacturing of medicines has been imposed, which will result in rising prices of life saving drugs and medicines in the country.

To boost export of pharmaceutical sector, it is also important to keep the prices stable with objectives to be compatible in the region for prices as compare to other countries like Bangladesh, Sri Lanka and India, he said.

Arshad Malik, also stated that Pakistan needs to stable prices of medicines with maximum facilitations to pharmaceutical industry to grow as well in the export sector as desired by the government sector.

He added that 17 per cent sales tax will not be accepted in any case, adding that even if the pharmaceutical sector had to go out on the streets to demonstrate protest against this decision, they will go for protests to abolish this added sales tax on medicines and raw materials for medicines.

He said that the government has imposed a tax of Rs160 billion on pharmaceutical sector in recent mini-budget. On one side, this decision will affect the pharmaceutical industry and also impact the public with increased prices of medicines.

He appealed to the government to waive sales tax on medicines and raw materials used in the manufacturing of medicines and abolish 17 per cent sales tax with immediate effect making facilities for public and pharmaceutical sector.

Executive Member Pharmaceutical Association said that the pharmaceutical sector will not tolerate 17 per cent sales tax on medicines and raw materials used for medicines under any circumstances.

The government’s decision to impose sales tax on raw materials used for medicines could severely affect the supply of medicines in the country, said Malik Arshad.

He also said that added sales tax on raw materials of medicines is an injustice to the people associated with this sector which will result increase in the prices of medicines because if 17 per cent sales tax is imposed then the prices of medicines will also increase up to 17 per cent.

The pharmaceutical sector has informed the government of its concerns and the government should exempt raw materials used in the manufacture of medicines from sales tax levied so as not to impose further burden on the public in view of further increase in the prices of medicines.

Malik Arshad said that it is the responsibility of the government to control the prices of life-saving medicines with objectives to facilitate the public.

Sales tax exemption on raw materials used in manufacturing of medicines will facilitate the pharmaceutical industry on one side as well as the public with stability of medicines prices in the country, he said.

The prices of life saving medicines in the country can be kept stable and the burden of increase in the prices of medicines will not fall on the people, if government abolished the sales tax on raw materials used in manufacturing of medicines, said Executive Member Pharmaceutical Association Pakistan.



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