With the hope to get some relief to the industry on the obligation to pay heavy access benefit sharing (ABS) levy, the Ayurvedic Drug Manufacturers’ Association (ADMA) is planning to meet the commerce ministry next week. The aim behind this meeting is to impress upon the seriousness of this issue and seek the support from the commerce ministry in presenting a case based on the ground realities on the implication of this unwarranted tax to the ministry of environment and forest.
Industry strongly feels that the government should take a serious note of this matter as this levy is going to seriously affect the sector, especially, the small and medium scale units. In the wake of the on-going confusion over the ABS tax, the industry wants the government to totally exempt the traditional sector like the Ayurveda and herbal industry from the ambit of this tax as it can cripple its growth.
Sources from ADMA pointed out that it is unfair for the industry to face the brunt of this access tax when they are already struggling to meet their ends in a highly competitive market with least government support. They pointed out that rather than supporting the industry the government is further pushing it to helplessness by introducing such tax that is unjustifiable to a traditional sector like Ayurveda, which is totally dependent on plant raw materials.
"It is the government's responsibility to support and ensure us with supply of high quality raw material to safeguard the interest of this indigenous sector, that has been in existence for thousands of years. Rather than supporting us the government seems to be restoring to arm twist to further limit our access to whatever resources we have currently. The ABS tax is bad for the industry's growth as it is confusing and creating a chaotic situation," the source added.
Industry strongly urged that apart from taking measures to clarify and fill in the gaps in the current format, the government should also take requisite steps to at least exempt small and medium scale units from the ambit of this tax as it will be very difficult for them to bear the brunt of the same. In fact, many are even contemplating to close their business completely fearing uncertain future.
Raising concerns over the questionable methods used by Gujarat state biodiversity board in coercing the manufacturers in paying the ABS tax, source informed that they have threatened and forced some companies to pay the tax. They are even demanding companies to pay the ABS tax from 2012, when as per the Act companies need to pay tax from 14th November 2014.
ADMA has been taking all the necessary steps to counter the claims and impress the government officials on the challenges and problems faced by the industry on this matter. It is understood that they have been consistently raising these issues with top government representatives right from the Ayush ministry to the state biodiversity board from time to time. Source informed that all their hopes are positively pinned on the meeting with the Pharmexcil slated next week, that the commerce ministry and ministry of environment will take cognizance of this matter.