The 25,000 strong chemists and druggists in Karnataka have called for a three-day statewide strike starting from April 4 to protest the callous attitude of the government for not conceding to their key demand of the First Point Entry tax.

While Assam, Kerala, Orissa, Maharashtra and Andhra Pradesh have passed a special legislation allowing 4 per cent, first point VAT based on MRP from April 1, the government of Karnataka has not accepted this demand.

The two trade associations in the State, Karnataka Druggists and Chemists Association and Bangalore District Druggists and Chemists Association are forced to go on strike only because the government has not cared to take care of their problem. “No one is against VAT but the principles (multi point collection) particularly its penal clauses are draconian and all that we want is the simplification of rules", a spokesman of trade associations said.

The decision to go on strike came late this afternoon as the government failed to provide a favourable response in this regard. "All that we asked was a parity with neighbouring states. When states governments of Kerala, Assam and Orissa could do it; it was unkind on our progressive government not to follow the same. Not only that, most of the drugs enter Karnataka from Maharashtra and Andhra Pradesh, hence the government should have done its bit not to ignore first point of sales approval, V Hari Krishnan, president, Bangalore District Druggists and Chemists Association told Pharmabiz.com

"Right from the start, we have been asking for VAT implementation on MRP at the first point of sale because this would be favourable for the state government to generate its full and final revenues without loss to the exchequer. The multipoint tax collection is confusing and time consuming", members of the Karnataka Druggists and Chemists Association said.

According to Arun Mehta, member BDDCA, “At the national level, all drugs coming under VAT should be under a composition scheme where up to Rs. 10 lakh of sales is exempted under VAT and for above Rs. 10 lakh to Rs. 50 lakh the VAT is levied at 0.25 per cent. Only in Karnataka, VAT is levied for sales between Rs.2lakh to Rs. 15 lakh, which is 1 percent, and this is 0.75 per cent higher than other states. For sales above Rs.15 lakh VAT is levied at 4 per cent.