With another Union Budget is round the corner, expectations and apprehensions are building up in the pharmaceutical industry which has already submitted the wish-lists to the Finance Minister who will table the budget on March 16.

Tax reforms, sops for promoting research and development, special support to boost active pharmaceutical ingredients, and cut on taxes on life-saving drugs in view of the GST that is set to be rolled out are among the wish-list by the industry, even as it is too early to get feelers from the Finance Ministry.

Organisation of Pharmaceutical Producers of India (OPPI) has asked the government to go ahead with tax reforms and put in place transfer pricing norms immediately. To deepen rural health infrastructure, the association has asked for weighted deduction for expenditure incurred in rural or semi-urban areas. It also felt that companies investing in the rural and semi-urban markets have long gestation period.

“Basic customs duty for health supplements should be reduced to 10 per cent and central excise duty five per cent (from 10 per cent) to make it bring it on par with drugs,” the pre-budget memorandum from the OPPI said.

Indian Drug Manufacturers Association (IDMA) has urged the Centre to incentivise the sector to push research and development and bring down taxes and duties on life-saving drugs. It also sought reduction on duties on APIs. Another suggestion from the IDMA is to enhance export incentives on drug shipments with a view to compete with China.

Leading industry body FICCI has called for exemption of duty for antigens, antibodies used in diagnostic kits. “The import of raw materials such as antigens/antibodies or any other ingredient corresponding to the manufacture of diagnostic test kits specified in list 4 put the local manufacturers at a disadvantage in comparison to imported finished diagnostic test kits specified in list 4 which are imported at nil duty. The notification should therefore include: bulk drugs/antigens/antibodies (monoclonal/polyclonal)/raw materials/components used in the manufacture of Life saving drugs/medicines including their salts and esters and diagnostic test kits,” according to its pre-budget memorandum.

The small and medium scale industry has also sought some solid incentives from the government so that they can be stay alive against the competition from the big players and thereby keep a tab on the prices of drugs in the country.