The Mumbai chapter of the Pharmaceutical Wholesalers Association {PWA} has called upon its members to stop all new purchases of drugs and pharmaceuticals with immediate effect as it is dissatisfied with the proposed VAT implementation.
"The draft rules of the Government of Maharashtra are not clear. At the end of the month on our closing stock if the set-off is not allowed then the distributor will be put in loss for the heavy amount {i.e. 9 per cent on closing stock}, which no distributor will be in a position to bear," said Dilip A. Mehta, President, Pharmaceutical Wholesalers Association.
Along with stopping new purchases, the association has also urged its members to keep minimum inventory and return all stocks purchased before January 2003. The maximum of the end of the month's inventory should match with the purchase of January-March 2003. The members of the Association has also been asked to bring to its notice if any company refuses to take back the stock.
The Association has further advised its members against the purchase of new stock even if the company agrees to reimburse or adjust the loss without the consent of the PWA.
Industry sources here, meanwhile, say that the talks between the AIOCD, the apex body of the pharmaceutical trade, IDMA and OPPI held in Mumbai during early part of this week have not resulted in any conclusion. Most of the states are also yet to come out with their draft proposal in this regard. Leaders of pharma industry, therefore, feel that the government will have to postpone the implementation of VAT to a date after a few months from now.