Chemists and Druggists in Tamil Nadu will down their shutters on March 25, in response to a call by the All India Organisation of Chemists and Druggists (AIOCD) against the introduction of VAT from April 1 next. The Tamil Nadu Chemists and Druggists Association (TNCDA), in a press release today, requested the Centre to postpone the date of implementation by three months to July 1 and asked the state authorities to discuss the issue with association representatives and find a solution by that time.

The association warned that chemists and druggists would be left with no choice but to stop purchase of medicines from April 1 if the Centre did not concede their request on postponement.

Stating that state governments had presented their respective proposed draft rules and regulations to the Centre for implementation of VAT-2003, the TNCDA stated that after going through the proposed rules, it had come to the conclusion that "the rules framed are complicated, impracticable and detrimental to the Pharma trade".

Claiming that the common man would have to pay between eight to nine per cent more on cost of medicines, as a result of VAT, the association sought incorporation of medicines in the schedule of essential commodities with a maximum tax of four per cent tax.

Levy of taxes like entry tax, cess and octroi should be dispensed with by respective state governments, the TNCDA said and added that it had sent representations to various quarters, including the Prime Minister, Union Finance Minister and state Chief Ministers in this regard.