The All India Organisation of Chemists and Druggists (AIOCD) has claimed the one-day strike called by the apex body of chemists and druggists on March 25 as a great success across the country. The strike was called in protest against the implementation of Value Added Tax (VAT) in medicines.
According to Sandeep Nangia, organizing secretary, AIOCD, medical shops remained closed in all states thereby making the strike 100 per cent success. He said that the token strike was meant to protest against the decision of the central government to include drugs in the general category and slap 12.5 per cent sales tax as per the value added tax (VAT) system that is to be in place from April 1, 2003. The AIOCD secretary hinted that the organization might have to intensify the agitation if the government is not giving a considerate hearing on the matter.
The organization feels that there is no clear idea about the implementation of VAT amongst the enforcement agencies themselves and the present stand is certain to put the members of the drug trade in a fix.
AIOCD has requested the government to collect VAT on medicines at the first point on MRP. It has approached the Empowerment Committee on VAT, the Prime Minister of India, Chief Ministers and Finance Ministers of all States and Sales Tax Commissioners requesting them to amend their State Laws with regard to the medicines also. The organizing secretary said that they are yet to get any response from the government.
The chemists are trying to explain to the governments the negative impact of VAT on medicines to the consumer. They feel that the draft rules put for implementation of VAT 2003, are complicated, impractical and detrimental to pharma trade.
AIOCD stand is to make MRP of medicines inclusive of all taxes. They want medicines to be incorporated in the schedule of essential commodity and with maximum 4 per cent Tax all over the country. This will ensure that Medicines are available at a uniform price throughout the country at cheaper price.
In Maharashtra, the strike has been more than 100 per cent successful, according to senior AIOCD officials. According to them more than 32,000 pharma retailers in the state did not open the shutters of their shop on Tuesday. “The strike was against the government. We did not want the general public to suffer. Therefore, barring few shops across certain strategic pockets of the country, all other shops co-operated in the strike,” said J.S. Shinde, General Secretary, AIOCD. “The strike was equally successful throughout the country,” confirmed Shinde.
In Tamil Nadu, the one-day strike has evoked a good response from the trade. According to Anandan, General Secretary, Tamil Nadu Chemists and Druggists Association (TNCDA), “The initial report we have is that on the whole the strike has been successful though we have reports that some of the outlets in Chennai and southern districts were opened for business,” he said.
The TNCDA had agreed to join the strike called by AIOCD in protest of the implementation of Value Added Tax from April 1, 2003. The Association had argued that VAT would push up the prices of drugs by almost 16.5 per cent, and wanted the Tamil Nadu government to postpone the implementation to June this year. It had also argued that the medicines be brought under the Essential Commodities Act so as to maintain the tax structure affordable to the general public.
Although Karnataka's 15,000 chemists and druggists had not agreed to participate in the nationwide strike call, yet all shutters of the druggists trade are down following a demand from the Karnataka Association of Traders (KAT).
“We had no intentions to support the AIOCD call but were forced to abide by the orders of KAT,” V Harikrishnan, president, Bangalore District Druggist and Chemists Association.
In Andhra Pradesh, all 35,000 medical shops across the state remained closed Ramesh Chandra Gupta, President, Andhra Pradesh Chemists and Druggists Association, said the strike was also total in the twin cities of Hyderabad & Secunderabad. 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.
(With inputs from Joe C Mathew in New Delhi, P N V Nair in Hyderabad, Nandita Vijay in Bangalore, Santosh Nair in Chennai & Prabodh Chandrasekhar in Mumbai)