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Delhi chemists approach CM on VAT issue
Our Bureau, New Delhi | Thursday, September 23, 2004, 08:00 Hrs  [IST]

The Retailers and Distributors Chemists Association of National Capital Territory of Delhi (RDCA), the state body representing more than 7000 retailers and distributors chemists of the state, has approached the Delhi chief minister, and ministers of finance and health to have MRP inclusive of taxes printed on medicines and get medicines exempted from VAT.

The association pointed out that since the medicines contain maximum retail price + local taxes extra as stipulated in DPCO, it will be difficult to quantify the VAT suffered at earlier stages and may result in different prices and losses to VAT dealer. "To avoid this scenario, medicines may be taxed at first / single point and should be exempted from VAT," the RDCA has requested.

The RDCA representation was part of the national wide campaign launched by All India Organisation of Chemists and Druggists (AIOCD), which represent more than 5.5 lakh chemists across the country.

With regard to the draft bill on spurious drugs, the association felt that the provisions are very grave and gives unlimited powers for the authorities, which may be misused and result in corruption. "For the first year the penalty and interest must be mild for minor administrative lapse or oversight and the powers of the officers must be reduced," they have opined.

RDCA also forwarded a copy of the AIOCD representation to the Union Chemicals and Fertilizers minister in connection with MRP inclusive of all taxes to the state government.

Speaking to Pharmabiz.com, Sandeep Nangia, president, RDCA said that the association not only works for the protection of the members' interests but also actively participates for the benefits of the consumer and the society at large. "Our commitment for the welfare of the society is well known and we have been working in coordination with government agencies, the drug control department and AIOCD in all the programmes for the benefit of the society. The chemists' fraternity all over the country has been pursuing with the central government to have MRP inclusive of all taxes printed on medicines and medicines be exempted from VAT," he said.

Explaining the role of RDCA in bringing about more awareness on regulatory affairs and quality consciousness among member chemists, Nangia said that they had organized a well-attended workshop "A healthy Tomorrow" in Delhi recently. The workshop had covered subjects like trade welfare, consumer welfare, cold chain maintenance etc.

RDCA is not directly involved in organizing such events. "We have promoted a not-for-profit organization for the purpose of holding such events and also bring out our newsletters. The "Pharma Welfare Education Foundation" is the body that is responsible for organizing such events," he explained.

Interestingly, RDCA acts as the "friend philosopher and guide of Healthcare Information & Educational Society" also and assists them in promoting "Pharma Solutions" the NGO that runs Delhi's only comprehensive drug information centre.

Currently, RDCA is actively involved with other organizations of pharmacy professionals like IHPA, IPGA, IPA, FIPO and Delhi Pharmacy Council in making "National Pharmacy Week" programmes a success in the state.

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