The Bangalore District Druggists & Chemists Association (BDCDA) has now submitted a memorandum to the Union government to incorporate certain paragraphs and additions in the NPPA's proposed amendments in DPCO 2013. This includes details related to definition of drugs, trade margin covering wholesale and retail, payment policy and payment of tax, besides value added tax (VAT) and Form V.
“While we appreciate NPPA for its amendments to the DPCO 2013 dated July 15, 2015, we would like to inform that our requests vide BDCDA/1532 dated July 15, 2013 and BDCDA/1893 dated November 26, 2014 are still pending,” said V Harikrishnan, president, BDCDA and Karnataka Chemists and Druggists Association.
The inclusions are to incorporate under Para 2(zf) definition of drug that it should include medicines and medical devices (surgicals & implants) for both human and veterinary use. Under Para 7(1) margin to retailer, ceiling price should be fixed on scheduled and non-scheduled formulations where 25 per cent of the price-to-retailer as margin shall be allowed inclusive of excise duty. For instance, if a formulation is priced at Rs.80, then 25 per cent which is Rs.20 constitutes the retailer margin which concludes the ceiling process of Rs.100, Harikrishnan explained.
Further, under Para 7 (1A), 10 per cent of price-to-wholesaler as margin to be allowed on price to retailer. In this case, for Rs.100 price-to-retailer will be Rs.80. A margin to 10 per cent to be allowed which amounts to Rs.8 and wholesaler price will be Rs.72.
Under Para 7(2), no manufacturer is allowed to give a margin to the retailer and wholesaler exceeding the prescribed margin in sub para (1) of this paragraph and this would include bonus offers covering free gifts in any form.
Under para 28, for the purpose of the sub-para (a), a dealer shall have a valid license to sell, stock and exhibit to distribute or wholesale or retail any drug for distribution as per Drugs & Cosmetics Act with a payment time-frame of 21 days by cheque or demand draft only as provided by the government in payment terms given for power, water and telephone etc. Under the same section (b), no dealer can withhold from sale / refuse selling any drug to a customer. However, in this case the customer should have a valid prescription of a medical practitioner and purchase the drug on payment of cash.
Under Para 28 (c), wholesaler and retailer who intend to purchase drugs from the manufacturers or wholesalers should be provided payment within 21 days in cheque or demand draft. This would indicate accountability of purchase.
The Association also indicated the need to ensure that the manufacturer should pay added local taxes on the ceiling price mentioned in the Column (8) of Form V Table ‘A’ and Table ‘B’. “We have presented the memorandum to department of pharmaceuticals, ministry of chemicals and fertilizers. In addition, we have also requested Dr. V.K. Subburaj, secretary, DoP to call an industry meeting on the trade margins (wholesale /retail),” said Harikrishnan.