Karnataka's pharmaceutical trade and industry will for the first time switch over to a 4 per cent value added tax in lieu of the sales tax from June 1, 2003. V Harikrishna, president, Bangalore Druggists and Chemists Association said that such a relief was much awaited by the industry and trade so that it could provide the much needed concession to the customers.

Sources from the industry have hailed the reduced value of 4 per cent as it will provide the consumers a big help in terms of reducing the cost of medical expenses.

According to a few heads of hospitals: Kidwai Memorial Institute of Oncology, St. John's Medical College Hospital, Manipal Institute of Nephrology to name a few, the concessions on life saving drugs were being eagerly awaited as the patients could considerably benefit from the fall in the cost of these drugs.

“We have so long faced the 10-12 percent sales tax for all these years,” informed Harikrishna who added that the government has last come forward with an eight percent fall in sales tax which could help the consumers.