PPMA warns of medicine shortage if taxes not abolished
Finance Minister Miftah Ismail talks to a journalist during an interview. PHOTO: REUTERS/FILE
The Pakistan Pharmaceutical Manufacturers Association (PPMA) has demanded of the government to abolish taxes on raw materials, citing shortage of 40 types of medicines, including life-saving drugs, and fearing 100 more if their request is not accepted.
“Abolish taxes on our raw materials,” PPMA Chairman Qazi Mansoor Dilawar said during a meeting with the federal ministers at the Parliament House on Friday.
Ministers Khursheed Shah, Miftah Ismail, Naveed Qamar, Ayaz Sadiq and Nazir Tarar along with the Federal Board of Revenue Chairman Asim Ahmad were present.
The PPMA chairman apprised the ministers of the difficulties being faced by the pharmaceutical industry. “The prices of raw materials has more than tripled.”
Dilawar urged the government to refund Rs48 billion collected as sales tax on import of raw material, withdraw 17% sales tax on import of raw material and increase prices of medicines by up to 25% to prevent collapse of the pharmaceutical industry.
He added that they had been suffering from severe crisis for the last six months but the government was constantly showing lack of seriousness. “Sales tax was imposed and promised to be refunded in this regard … both the governments have so far collected our refunds of Rs48 billion which the government is not ready to give back due to which they have no more resources to import raw materials.”
Increasing prices of gas, electricity and petroleum products and manpower wages had led to a 45% increase in production costs, he added.
The PPMA chairman suggested that the government impose taxes on raw materials used for other purposes than pharmaceutical products.
Finance Minister Miftah assured the PPMA chairman that he would get Rs48 billion refunds released from the FBR.
The FBR chairman said that Rs40 million refunds had been given in the last one week.
Ahmad accused the pharmaceutical companies of buying raw materials tax free and selling them in the market.
Miftah asked Dilawar whether they were selling raw materials tax free.
The finance minister said they would meet again on Monday to resolve all issues.