The Chemicals and Fertilizers ministry may grant more time to the importers of drugs to comply with the amended Drugs (Price Control) Order 2006 that calls for printing 'maximum retail price inclusive of all taxes' on packs of medicines from October 2, 2006. The ministry's response has come after the drug importers succeeded in explaining their practical problems to the C&F department, industry sources said.
According to them, the manufacture and packaging of drugs meant to be imported to India is carried out much early by several multinational companies. "Since the companies need to cater to the global requirement, there would be huge stocks meant for several import destinations. We need at least six months to clear the stock," an industry source said. However, it is not clear if the department is willing to grant that much time for the drug importers. The department has only agreed to look into the matter, an official source explained.
Meanwhile, the official clarification that is likely to be issued by the ministry allowing companies to print MRP inclusive of taxes even before the trade segment has questioned October 2. They feel that a clarification cannot supersede the notification, which says that the amendment of DPCO is effective from October 2, 2006. "Till October 2, it's the present DPCO that one has to follow. When the current rules clearly talk about MRP exclusive of taxes, there could be a technical flaw in issuing a clarification", trade sources said.
As pharmabiz had reported, the proposed clarification would mainly aim at explaining the position National Pharmaceutical Pricing Authority (NPPA) and is to take effect in fixing ceiling prices during the post MRP inclusive regime. It will state that the ceiling prices are exclusive of all taxes and the companies will be free to add whatever extra tax component applicable before printing the final MRP.
The department would also make it clear that it is not looking at Uniform MRP on medicines until there is a uniform tax regime in the country.