The Task Force on 'Enabling the private sector to lead the growth of pharmaceutical sector in the country', constituted by the department of pharmaceuticals (DoP) in November last year, has recommended to the government for a review of the implementation of Drug Price Control Order (DPCO), 2013.
“There is a need to review the implementation of DPCO, 2013 to resolve the genuine practical problems of implementation. Government may implement predictable and stable price control mechanisms through consultative approach with the industry,” the Task Force, headed by DoP secretary, recommended in its report which was submitted to the government recently.
The Task Force also recommended to the government to rationalise the inverted duty structure on APIs and exempt from excise duty for production of APIs. The excise duty rate of API may be rationalised and made at par with pharma goods i.e. excise duty on the inputs (API) may be reduced from current 10 per cent. Alternatively, the government should introduce a refund mechanism to enable pharma manufacturers to avail refund of excess Cenvat credit especially in case of such an inverted duty structure, the Task Force in its report said.
In another recommendation, the Task Force asked the government to revise the list of R&D equipments exempted from customs duty in consultation with NIPER.
To provide thrust to the pharma sector, a Task Force on 'Enabling the private sector to lead the growth of pharmaceutical sector' was set up by the DoP in November last year, which was headed by secretary, DoP and consisted of representatives from Planning Commission, department of industrial policy and promotion, department of science and technology, department of biotechnology and various industry associations including IPA, IDMA, BDMA, OPPI, AIMED, CIIO, FICCI, ASSOCHAM, FOPE etc.