As part of the nationwide bandh call by the All India Organisation of Chemists and Druggists (AIOCD), all 35,000 medical shops across the state remained closed on Tuesday. The strike call was to protest against the proposed value-added tax (VAT) that will come into force on April 1. Talking to Pharmabiz.com on Tuesday morning, Ramesh Chandra Gupta, President, Andhra Pradesh Chemists and Druggists Association, said the strike was total in the twin cities.
Reports from the districts also indicated the hartal was complete, he said. Asked about the future course of action, he said the AP unit would go by the decision of the AIOCD.
Gupta appealed to the Centre to reconsider the decision as the price of medicines would go up by 9-10 per cent. While the tax imposed on tobacco and gold articles was 4 per cent, it was 12.5 per cent on drugs. The medicines were currently available to the consumers on MRP plus 7 % local taxes. As per the VAT regime of taxing at multiple points of sales, the tax results in MRP plus 16.75% approximately with local taxes extra. Under VAT, commodities are categorized to pay a tax of 0, 1, 4 and 12.5 % respectively.
As a result of VAT implementation, he said medicines would be sold at two different prices in the same city or town with some traders exempted from the tax and others included in the new system. Consumers would have to pay different prices for the same medicine in different shops. He said the very purpose of introducing VAT - to have uniform taxation all over the country - would be defeated as the prices of medicines would differ both within the state and also between the states.
Gupta added that the Association had made arrangements to supply life-saving drugs to patients in case of an emergency.