Saturday, August 13, 2022

Drugs shortage on the cards as pharma industry rejects sales tax

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ISLAMABAD: The Pharmaceutical industry has refused to accept a one percent sales tax on medicines by the government, raising concerns regarding the shortage of drugs in the country, ARY NEWS reported.

According to sources privy to the matter, the Pakistan Pharmaceutical Manufacturers Association (PPMA) has refused to accept a one percent sales tax on medicines and the government has established a backdoor contact with the manufacturers to resolve the issue.

“The government has sought 10 days to withdraw sales tax,” they said adding that the pharma industry has opposed any taxes on medicines and argued that one percent tax will lead to Rs70 billion losses for them.

The sources in the national health ministry said that the pharma industry generates a foreign exchange of Rs700 billion and had complained that the government was not ready to refund the tax to them.

Read More: SHORTAGE OF MEDICINES LIKELY TO BE ENDED IN 2.5 MONTHS: PPMA

“The government has also directed the drug makers against shifting the burden of one percent sales tax to consumers,” they said. The sources said that the industry was ready to pay one percent sales tax if the government agrees to refund it.

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