The Ayurvedic Drug Manufacturers' Association (ADMA) has urged the union government to revoke the implementation of one per cent excise duty on ayurvedic classical products that was proposed in the union budget for the year 2011-12, which was recently presented by union finance minister Pranab Mukherjee.  

ADMA has already sent a letter in this regard to the union finance minster and the health minister early this month expressing their concern on the impact of this proposal on the fledgling Ayurveda, Siddha and Unani (ASU) industry in the country.

 “We along with the other associations across the country have sent our representation to the government stating our views on this issues. The government must understand that levying tax from such a small industry will only destroy the industry. Our industry is already very small with almost 90 per cent of it being small and micro level units. If the government will impose one per cent tax from these manufacturers it will kill the traditional system of medicine,” said Chandrakanth Bhanushali, general secretary, ADMA.

He pointed out that currently only the classical products of ASU drugs have no or zero excise duty, whereas the manufacturers of proprietary ayurvedic medicines are paying 4 per cent excise duty.

“It will be an additional burden for the ASU industry since it has very less turnover. The government is certainly not going to get much profit from imposing excise duty on ayurvedic classical products, then why do they need to take such a step that will cripple the industry on the other hand,” he questions.

He further added that rather than taking such steps that are anti- industry, the government should look into measures that will ensure growth and development of the many small scale and micro level units in India which need government support to grow.