The All India Organisation of Chemists and Druggists (AIOCD) has cautioned the Union government of totally stopping purchases of medicines and drugs, unless it revises and dilutes VAT implementation Rules by April 15. Simultaneously, the organisation would also launch an indefinite token strike if its demands were not met.

“As of now we have only lowered our purchases from the industry. If the government refuses to act fast, we will totally stop the purchases,” said J S Shinde, general secretary, AIOCD.

The AIOCD sources maintained that there are only fewer chances from states like Maharashtra, Andhra Pradesh and Karnataka to implement VAT from April 1. However, they did not rule away the possibility as well. “We would give another 20 days time to the state governments till April 15 for them to revise the VAT norms, which is a long time,” he said.

Earlier the trade organisation had charted a 5-point revision demand on VAT. The demands were as follows — to simplify the VAT Rule and treat chemists as custodian of health and not criminals, bringing of the VAT rate to just 4 per cent, abolition of octroi, surcharge, TOT, cess on medicines, exemption of the retailer from VAT return and abolition of the central sales tax fully and make retail price inclusive of all taxes. “Of these, exemption of retailer from the VAT return and abolition of octroi are the essential. The government of Maharashtra have already agreed to take these two demands into consideration,” he said.