Karachi, Pakistan: The Pakistan Chemists and Druggists Association (PCDA) has strongly criticized the government’s decision to impose an 18% general sales tax (GST) on alternative medicines. The association has demanded the immediate withdrawal of this tax hike, which is expected to lead to a substantial increase in prices, making these medicines unaffordable for many.
A delegation from PCDA, led by Ghulam Hashim Noorani and Abdul Samad Budhani, met with Fayyaz Magon, Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), to discuss the matter. They urged the FPCCI to intervene and advocate for the revocation of the GST on alternative medicines.
The delegation highlighted that alternative medicines, including herbal and homeopathic remedies, are widely used by the middle class population. The imposition of GST, coupled with the lack of government subsidies, will significantly increase the prices of these medicines, making them inaccessible to a large segment of the population.
Furthermore, the PCDA warned that the tax hike would have a detrimental impact on the distribution system and could lead to a shortage of medicines nationwide. Importers, traders, and retailers would be adversely affected, potentially disrupting the supply chain and creating difficulties for patients.
The association demanded that the government take immediate steps to address this issue. They proposed two options: either provide subsidies and concessions to the pharmaceutical sector or exempt alternative medicines from GST, additional taxes, and withholding tax for non-filers. Business Recorder
The PCDA called for swift amendments to the Finance Bill and the issuance of a SRO to exempt medicines regulated under the Drug Regulatory Authority of Pakistan (DRAP) Act and Medical Device Act from taxes. They emphasized that failure to address these concerns would have severe consequences for public health and the affordability of essential medicines.
