The Federation of Gujarat State Chemist & Druggist Association (FGSCDA) is soon planning to send a representation to the state commercial tax department demanding to take action against the practice of direct sale of drugs to patients by the doctors and hospitals.
Through the representation, the Association wants to highlight the loss of revenue to the government exchequer as such direct sales of drugs by doctors and hospitals, the state government stands to lose VAT and other local taxes. Such unethical activity is also impacting the pharmaceutical industry in the state.
Jashvant Patel, president, FGSCDA, said, “As of now we are collecting the data to analyse the exact amount that the government is indirectly losing due to this practice. However, our estimate is that it will be as much as 10 per cent of the total sale of medicines sold in the state. Most of these drugs are also high value ones.”
The motive behind this representation is to stress on the implications caused due to this practice which is actually done in violation of the Drugs & Cosmetics Act. This is the first time that the association is sending a representation to the commercial tax department.
Patel informed that along with the commercial tax department, the association is also planning to send a representation to the commissioner of Gujarat Food & Drugs Control Administration (FDCA) as well.
FGSCDA had already sent a representation to the Gujarat FDCA asking it to look into this matter and take appropriate action under the D&C Act. As no response has come from regulatory body, the Association has decided to approach state FDCA again seeking to check this unlawful activity.
“This is the second time we are pushing this matter as it needs urgent consideration. Only by ensuring the effective implementation of the D&C Act can this problem be solved and we hope that the government will realise it and take steps to implement it accordingly,” stressed Patel.