All India Organisation of Chemists and Druggists (AIOCD) has decided to ask its state constituents to take up the protests against Value Added Tax (VAT) proposals at respective state levels. The decision to avoid any national campaign comes in the wake of the fears that the entire nation may not opt for VAT by April 1, 2005.
Informing this to pharmabiz.com, R B Puri, president AIOCD said that the trade apex body is not inclined to call for a national level agitation of retail and wholesale chemists as the impact of VAT regime is not the same in all parts of the country.
"There is a clear division among the states with regard to the implementation of VAT. Even among the states where VAT is to be implemented, the guidelines those are being prepared are not the same. The organization cannot take a single approach towards the varied situations", he said.
AIOCD is to ask all state chapters to take up the matter on its own and prepare region specific protests after April 1, 2005. However, the apex body is not to remain silent in the wake of the fresh developments. The organization is waiting for a notification from West Bengal allowing collection of VAT based on MRP from first point of sale for drugs. The AIOCD president said that the notification, expected to come on March 21, 2005 would satisfy the major demand of the chemists in that state. "We want a similar system to be adopted by all other states. AIOCD will dispatch copies of the WB notification to all state associations and ask them to take up the matter with the respective state governments for a similar order", Puri said.
In fact, AIOCD had expected an announcement in this regard made by the chairman of the Empowered Committee of Finance Ministers after their recent Delhi meeting. "We were shocked to receive a communication from the chairman last night expressing his inability to make such a statement. However, the model is sure to be accepted in West Bengal, and we are hoping to bring in similar system in all VAT complied states", Puri said.