The National Pharmaceutical Pricing Authority (NPPA) has directed the pharmaceutical manufacturers to reduce the prices of medicines as the Union finance ministry has exempted the drugs and pharmaceuticals from the whole of the education cess and secondary & higher education cess, resulting into reduction of excise duty from 6.18% to 6%.
The Government of India in the ministry of finance (department of revenue), vide Notification No. 14/2015 and 15/2015 –Central Excise dated 1st March, 2015 has exempted the drugs and pharmaceuticals from the whole of the education cess and secondary & higher education cess, resulting into reduction of excise duty from 6.18% to 6%.
The above reduction in the MRP (inclusive of excise duty and all taxes) shall take effect immediately in terms of above mentioned two notifications both dated the 1st March, 2015 of the ministry of finance, department of revenue.
Accordingly , therefore, in exercise of the powers, conferred by paragraph 4, 5, 6, 10, 11, 14, 16 and 19 of the Drugs (Prices Control) Order, 2013, read with S.O. No. 1394(E) dated the 30th May, 2013 issued by the Government of India in the Ministry of Chemicals and Fertilizers, the National Pharmaceutical Pricing Authority hereby directs all the manufacturers to ensure to revise their maximum retail price (MRP) (inclusive of excise duty and all taxes) of all formulation packs downward, pursuant to aforesaid notifications dated 1st March, 2015, the NPPA in a notification said.