The Central Government has amended the Drugs (Prices Control) Order 1995 to announce Drugs (Prices Control) Amendment Order, 2006 to enforce 'maximum retail price inclusive of all taxes' to be printed on packs of medicines, with effect from October 2, 2006. However, the notification, issued today, has said nothing contained in this order shall apply to the medicines manufactured prior to October 2, 2006.

The notification has said 'maximum retail price' means the retail price arrived at or fixed in accordance with the provisions of the new Order and includes a ceiling price, at which the drug may be sold to the ultimate consumer and where such price is mentioned on the pack, the word "Maximum or Max. retail price inclusive of all taxes' shall be printed on the pack. For the purpose of this clause, the words 'inclusive of all taxes', in relation to any drug shall include all taxes local or otherwise include excise duty, sales tax/value added tax (VAT).

In Form III, the new Order has substituted the serial numbers 12 and 13 with new definitions in the old Order, in which12 will stand for number of packs sold during the last accounting years and details of other packs of the same formulation with their maximum retail price. Break up of maximum retail price will be ex-factory cost + 100% MAPE on ex-factory cost + excise duty + sales tax/VAT + other local taxes, the notification said.

The amendment is to be published as extraordinary, in Part II, section 3, sub-section (II) of the Gazette of India.