Imposing sales tax on alternative medicines ‘a cruel step’: experts

Although no tax has not been imposed on allopathic medicines in the finance budget, the government has imposed an 18 percent GST on all alternative medicines, including Unani or herbal, Ayurvedic, and homeopathy drugs, making them unaffordable for many people, manufacturers, and traders lamented on Thursday.

They noted that a vast majority of people, especially those living in rural and semi-rural areas, rely on alternative medicines, including Unani, Ayurvedic, and homeopathy medicines, as well as herbal remedies. The imposition of an 18 percent GST will increase their cost by at least 25-30 percent, depriving a large segment of society of these remedies.

According to a study, around 51.7 percent of people chose Complementary and Alternative Medicine (CAM) while 48.3 percent chose biomedicine. Of those who chose CAM, 20 percent also used biomedicine; 16 percent use homeopathy, 12.4 percent use Unani medicine, 2.1 percent use mind-body medicine (faith healing), 0.9 percent use biologically based practices (home remedies, diet, and nutrition), 0.05 percent use energy medicine (Reiki), 0.05 percent use Traditional Chinese Medicine, and 0.02 percent use aromatherapy.

“Imposing sales tax on alternative medicines is a cruel step as mostly poor people use these medicines. Often, they don’t go to doctors and visit homeopaths, hakeems, and alternative medicine practitioners and use the alternative medicines prescribed by them,” said Abdus Samad Budhani, spokesperson of the Pakistan Chemists and Druggists Association (PCDA).

Abdus Samad said the government provides no subsidy or relaxation for the preparation and import of raw materials for alternative medicines, and now it has imposed general sales tax on them. He called this an unwise decision as it will increase the burden on the poor segment of society who are already suffering due to the rise in communicable and non-communicable diseases.

Demanding that the government provide the same relief to the manufacturers and importers of alternative medicines as has been provided to allopathic medicine manufacturers, Budhani said the government should tax the rich and the informal sector instead of squeezing the poor segments of society.

“Manufacturers and importers of alternative medicines will pass on the tax to the consumers, which will only increase the suffering of people living below the poverty line,” he warned.