ISLAMABD: (June 29, 2022). The government has withdrawn 17 percent general sales tax (GST) imposed on import of raw material used by the pharmaceutical industry . Finance minister, Miftah Ismail, has introduced an amendment in Finance Bill 2022-23 to withdraw GST on import of raw materials used for manufacturing of the lifesaving drugs.
According to the amendment, the importers will pay only 1 percent GST on import of raw materials used for manufacturing of the lifesaving drugs.
The pharma industry will be allowed to import active pharmaceutical ingredients excluding excipients, for manufacturing of drugs registered under the Drugs Act 1976 (XXX1 1976) or raw materials for the basic manufacture of pharmaceutical active ingredients. The Drug Regulatory Authority of Pakistan (DRAP) certification. The new amendment said (1) DRAP shall certify item-wise requirements of manufacturers of drugs and APISs and in case of import shall furnish all relevant information to Pakistan Customs Computerised System; and (11) No input tax shall be adjusted by the manufacturers or importers.
President Pakistan Drug Lawyer Forum , Noor Mahar, withdrawal of 17 % GST on import of raw materials of pharmy industry was a good step and it will result in ending the culture of shortage of lifesaving drugs in Pakistan. ,Mr Noor Mahar also hoped in his telephonic conversation with NEWSMAN on Wednesday the government’s decision of withdrawing 17 % GST on import of raw materials used by the pharma industry will bring down the prices of lifesaving drugs in Pakistan.
The pharma industry is one of the most pampered industries in Pakistan. It make windfall profit on sale of drugs and there is no authority in Pakistan to have a check and balance on phara business. The DRAP instead protecting the interest of the end consumers of lifesaving drugs has a history of protecting drug mafia to help them make money at will. Rather DRAP and ministry of Health officials prefer to become a party to money making spree of pharma industry. Pakistan’s pharma industry is so influential that it gets appointed its own man rather taut as DRAP chief and then he in return secure undue benefits in terms of price hike of drugs and other benefits. The same trend in prevailing in DRAP for years .
The drugs barons had revised 12 times prices of drugs in the rule of Pakistan Tehreek e Insaf (PTI) as its top decision makers were hands in gloves with DRAP crooked Chief Executive Officer (CEO) for dirty business of making lifesaving drugs 500 % and in some cases even more costlier in its quarter to four years rule. Prior to PTI rule, Sara Afzal Tarar worked as a tout of pharma industry in Pakistan Muslim League Nawaz (PML-N) government .
As Health minister, Sara Afzal Tarar , got approved a Consumer Price Index (CPI) formula for increase in rates of drug prices. Since drug mafia had great support in PTI rule, the same sin of Sara Afzal Tarar remained in practice and it resulted in 12 time increase in drug prices in the rule of ‘Honest’ prime minister, Imran Khan.