Industry & Economy
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Budget
Pharma body seeks higher level of abatement
Our Bureau
New Delhi
,
Jan. 12
IN the wake of the Finance Ministry levying excise duty on the retail price of medicines instead of levying excise on the manufacturing cost, the pharmaceutical industry has been seeking a higher level of abatement, up from the present 35 per cent. This, they felt, would help curb a price hike in drugs.
The Organisation of Pharmaceutical Producers of India (OPPI), a group comprising multinational companies, has already made a representation to the Finance Ministry.
Mr Z.H. Charna, Director, OPPI, said, "During our discussions, we had told the Government that they should provide at least 56-57 per cent abatement. Expenses related to breakage, expiry and promotional expenditure have not been factored in. Also, we wanted the Government to wait till the value-added tax (VAT) regime is in place before making changes in the excise structure."
It had suggested that the percentage of abatement should be at least 58 per cent if drugs come under 4 per cent tax bracket in the VAT regime and 61 per cent abatement if VAT on drugs is pegged at 12 per cent.
Meanwhile, Dr Swati A.Piramal, Director, Strategic Alliances and Communications, Nicholas Piramal India Ltd, met the Finance Minister, Mr P. Chidambaram, on Wednesday. The Indian Pharmaceutical Alliance is also likely to make a representation shortly.
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