KARACHI: The Pakistan Chemists and Druggists Association (PCDA) strongly condemned the imposition of an 18% general sales tax (GST) on alternative medicines and demanded immediate withdrawal. The tax hike is expected to increase prices by 20-25%, making these medicines unaffordable for the middle class.

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 express their concerns. They urged the PCDA to play a role in getting the GST revoked.

The delegation explained that alternative medicines, including herbal and homeopathic remedies, are used by the middle class and are not subsidized by the government. The GST imposition will not only increase prices but also harm importers, traders, and retailers, potentially disrupting the distribution system and leading to a nationwide shortage of medicines.

The PCDA demanded that the government either provide subsidies and concessions to the pharmaceutical sector or exempt alternative medicines from GST, additional taxes, and withholding tax for non-filers. They called for immediate amendments to the Finance Bill and the issuance of an SRO to exempt medicines regulated under the DRAP Act and Medical Device Act from taxes.

The association warned that if the taxes are not withdrawn, it will lead to a significant increase in prices, making medicines unaffordable for the common man, and ultimately harming the public health.

Copyright Business Recorder, 2024