Drugs: manufacturers demand increase in MRP, abolition of sales tax

PESHAWAR: Local pharmaceutical manufacturers have expressed outcry over the non-increase in maximum retail prices (MRP) of medicines/lifesaving drugs and paying not serious attention towards resolution of their issues, demanding of the government, ministry of health and other relevant authorities to increase in MPR by 20 to 30 percent and immediately abolishment of 17 percent sale tax on pharma sector.

The issue was taken up during a meeting of a delegation of local pharmaceutical manufacturers with Sarhad Chamber of Commerce and Industry (SCCI) Hasnain Khurshid Ahmad here at the chamber’s house on Wednesday.

The delegation was led by Chairman SCCI’s Standing Committee, and former vice president Junaid Altaf. Owners of different pharma manufacturing units were present during the meeting.

The meeting demanded an increase in MRP by 20 and 30 percent and abolishment of 17 per cent sale tax on pharma sector to prevent destruction and shortages of medicines and price hike as result of closure of many units of this crucial pharma industry.

Junaid Altaf told the meeting that it would be completely unjust to not increase maximum retail price (MPR) after rising oil and raw materials prices in global and local markets. He continued to say that prices of raw materials have gradually increased in the global market, especially the pharma companies have been confronted with enormous difficulties and issues after the novel corona virus pandemic situations.

Altaf informed the forum that the government is collecting 17 per cent sale tax from the pharma sector, whereas cost of production has remarkably increased following rapid depreciation of Pakistani rupee against US dollar.

On the other hand, the SCCI’s committee chairman said the cap of MRP of medicines and drugs are not only making it hard for them to run industries, but it has been made completely impossible. Hasnain Khurshid assured the visiting delegation on the occasion that the chamber would take up issues relating to the Pharma sector with federal and provincial relevant authorities in an efficient manner.

The SCCI chief while highlighting different issues of the business community said that excessive power outages have badly affected the industrial production while losses were also increased inordinately. Over 70 to 80 pharmaceutical manufacturing units in Khyber Pakhtunkhwa are near to closure which is a prime source of employment for many people, Junaid Altaf told the meeting. He warned that if the pharma sector issues were not resolved seriously then a large number of people would be unemployed after closure of many units in the province.

The meeting was informed that poor people would face difficulties after medicines shortages and ‘price hike’. Altaf told the meeting that such policy was not implemented on raw materials industries but non-increase of MRP of medicines and drugs would also be unjust and unfair, which was unacceptable and unbearable.

Therefore, the participants requested the federal ministry of health and relevant authorities to immediately increase the MRP of medicines and drugs by 20 to 30 percent and abolish the 17 percent sales tax on the pharma sector. Otherwise, they warned that SCCI along with people attached with the pharma sector would be strongly agitated.

Copyright Business Recorder, 2022