The wholesale drug traders in Kerala have stopped receiving stocks from the pharmaceutical companies since Thursday, protesting against the multipoint taxation system under the new VAT regime.
Sources with the All Kerala Chemists & Druggists Association (AKCDA) told Pharmabiz that talks with finance department of the Kerala Government has failed so far, and hence the association is launching an indefinite strike. First the wholesalers have stopped drug purchases, and if required, the retailers would also down their shutters. Talks are likely to continue this week.
AKCDA's demand is to collect tax at first point of sale based on MRP of the drug, instead of multiple taxations at different levels, which is practically impossible. The single point taxation based on MRP has been successfully implemented in states like West Bengal, Haryana and Rajasthan, and hence Kerala also should follow the same, demand the traders.