The Bangalore District Druggists and Chemists Association (BDDCA) urged the Karnataka government to focus on three issues facing pharma trade in its state budget presentation this month. The Association has stated that if these are considered favorably, it would help the 28,000 chemists and druggists considerably.
The first point indicated by BDDCA is to make suitable amendments to collect payment of value added tax (VAT) on Medicinal & Pharmaceutical Preparations with manufacturers /marketer/first seller in the state as per Drugs (Prices Control) Order – 2013.
Secondly the Association has put forth a request to withdraw Circular No. CCW/CR 44/2013-14 dated 29.04. 2014 of Commissioner of Commercial Taxes which mandates upload of sales & purchase invoices.
The Association also sought suitable amendments and orders to re-structure Karnataka Drugs Control Department as ‘Karnataka Food Safety and Drugs Administration Department’ on similar lines that of Tamil Nadu, Gujarat and Maharashtra. The state government will also need to allocate sufficient funds for this change of department's jurisdiction which will cover a wider range of services.
V Hari Krishnan, president, The Bangalore District Druggists and Chemists Association and the Karnataka Chemists and Druggist Association has communicated to the state government that efforts will need to the made to immediately stop SMS (short message service), email, telephone calls and notices which penalize our members on uploading of sales and purchase in-voice by the commercial sales tax departments.
“We are also awaiting for the amendments of value added tax (VAT) payments as per the circular issued via No. CCW/Cr.44/2013-14 dated April 29, 2015 and allocate the required funds”, he added.
Delving on the issue of VAT payment on MRP, Krishnan said that the government has already provided the chemists and druggists the option of VAT payment on MRP. “The VAT is already been paid in advance by our dealers to the manufacturers/marketer/first seller. Subsequently, our wholesalers and retailers have no tax liability. Therefore, it does not serve the purpose when the invoice is uploaded because no input taxes are claimed by our dealers. Hence pharmacy traders now requesting the government to exempt them from this”, stated the BDDCA and KCDA.