While welcoming the proposal of the Union finance minister for the budgetary allocation of Rs.1069 crore for the department of Ayush, the Centre for Traditional Medicines and Research, Chennai (CTMR) observed that the 35 per cent MRP based duty abatement for branded drugs would only help the manufacturers of proprietary medicines.
The abatement of 35 per cent excise duty on MRP is provided only to the branded medicines, not to the classical or shastric medicines for which the industry has been representing in the past, said Dr T Thiruanarayanan, the Siddha technical expert and the secretary of CTMR. Now the government has made it on par with the allopathic medicines for which this 35 per cent abatement in excise duty is available for several years. He said this 35 per cent is given for business promotion purposes including samples for doctors.
“We are disappointed with the Union Budget on several counts. It has not removed the two per cent excise duty levied on classical/shastric medicines on which most of the graduate doctors are trained. Moreover, very few companies are manufacturing classical formulations. Most of the big players are making proprietary/branded drugs. So the present tax sops in the budget will help only the big companies like Himalaya, Dabor, Charak Baidyanath etc. The south based companies are engaged in the manufacture of shastric medicines such as Arishtam, Kashaayam, Lehyam, Choornam, Asavam, Thailam etc. and their turnovers are lower than branded drug makers. If the two per cent ED is removed, these small companies will be benefited,” he responded.
But, Dr Thirunarayanan said the MRP based duty abatement is a welcome move which will surely encourage the ISM industry for their growth and development. He said the finance minister could have helped the classical medicines by cutting the levy of two per cent excise duty, for the collection of which the government is spending an amount more than that.
Hailing that the budget allocation of Rs.1069 for the promotion of Ayush education and services is a supportive measure to the Ayush sector, the Siddha expert commented that if the amount was utilized properly it would definitely help the overall improvement of education and health services standards through Indian system of medicines.
Vaidya S Usman Ali, the president of CTMR, said previously there was eight per cent excise duty on MRP (on 100 per cent) for proprietary medicines. Now it has come to eight per cent of the 65 per cent of the MRP due to the 35 per cent abatement. But this abatement will not help the classical drugs, he added.
The Ayurvedic Medical Association of India (AMAI) general secretary, Dr Rejith Anand has welcomed the decision of the union government in giving budgetary incentives to the Ayush sector. He said government should also help for manufacture of classical ayurvedic preparations like Kashayams, Lehyams, Thailams etc. which face challenges due to shortage and price rise of raw materials. He said his association is demanding removal of excise duty for classical ayurvedic products.
Dr D Ramanathan, secretary of Ayurvedic Medicine Manufacturers Association of India (AMMOI) said he had submitted a pre-budget memorandum to the union government demanding a cut in excise duty on ISM products, but expressed happiness over the duty abatement of 35 per cent for branded medicines on MRP basis.