The Pharmaceutical Export Promotion Council (Pharmexcil) has asked the Union government to provide Rs 1000 crore to support small and medium enterprises (SMEs) for Schedule M compliance and to meet global regulatory compliance. The council has also demanded to change in the definition and investment limits of small scale industries from a maximum of Rs 5 crore to Rs 15 crore and medium scale industries from a maximum of 10 crore to 25 crore.

The council, in its pre-budget submission to union finance and commerce ministers, demanded for the total exemption of service tax for export related services. It also demanded to the government to continue the income-tax benefits to the export oriented units (EOUs), presently available to the EOU units till March 31, 2010, at least another five years till 2015. The Union Budget will be presented by finance minister Pranab Mukherjee on July 3.

The Pharmexcil said that for innovation-led growth, huge infrastructure is to be created in human resources, regulatory and for patents along with fiscal benefits to drug discovery activities. Long term commitment with a special fund needs to be created and a special fund for infrastructure development in environmental protection activities should be created. It sought special fund from the government for carrying out pharma task force related activities.

In this innovation era all the R&D expenses including clinical trials and patent related, whether done in India or abroad should be included for weighted average deduction under section 35 (2ab) and these benefits should be extended permanently to promote new chemical entity (NCE) based research, the Council demanded to the government. It also demanded for the inclusion of pharmaceutical products under high tech products export promotion scheme.

The Pharmexcil asked the government to expand the scope of focus market scheme to include more number of other countries like Middle East & SAARC.

The Pharmexcil also asked the government to reduce the special additional duty to 2 per cent against the present special additional duty levied by customs in lieu of CST at 4 per cent advalorem as the CST itself is reduced to 2 per cent.