The seventh annual general body meeting of the Consortium of Indian Pharmaceutical Manufacturers and Marketers Association (CIPMMA) held on June 22 at Kodaikanal passed four resolutions including demand for introduction of general sales tax (GST) system for pharmaceutical products in order to have a uniformity in sales tax for drug sales.
The AGM also invited the attention of the union health minister, Dr Harsh Vardhan, to consider favorably the issues raised by the marketers and sought maximum support of the health ministry for the pharmaceutical trade industry.
The resolution says that the governments of Himachal Pradesh and Uttarakhand levy no excise duty and other states impose only MRP based excise duty. In MRP, 30 per cent of the amount is added to the cost. So, if GST is introduced, the MRP can be brought down and it will help the poor patients of the country. Since everything is included in the MRP no other tax has to be given in other places. The manufacturing company will pay the GST. If uniformity in sales tax is in place, no pharma company will enjoy the benefits of the SEZ areas. Likewise, the government should also consider reduction of excise duty and VAT on pharmaceutical products.
The AGM also demanded implementation of separate licensing system for marketing companies. Currently they are given wholesale licences, but their operations are different from wholesalers., hence they need separate identity in the trade industry. To get it realised, the Consortium will mobilise the support of the Parliament members for which CIPMMA has decided to constitute a separate committee.
The marketers group also resolved to take to the government another demand that government should fix ceiling prices for raw materials for the products come under DPCO 2013.
P Arun Prasad, the general secretary of the association presented the resolutions and was passed unanimously with a voice vote. The 7th annual general body was inaugurated by M Rajaratinam, chairman of TN IDMA.