Drug Producers Issue Countrywide Warning About Serious Medicine Shortage
Pharmaceutical companies have urged the Federal Board of Revenue (FBR) to expeditiously pay 40 billion rupees in unpaid sales drug tax refunds in order to prevent a major medication scarcity in the nation.
Qazi Mansoor Dilawar
At a press conference on Thursday, Qazi Mansoor Dilawar, the chairman of the Pakistan Pharmaceutical Manufacturers Association (PPMA), while informed the media that the FBR must pay sales tax refunds totaling Rs. 40 billion because a 17 percent sales tax is imposed on the inputs and raw materials used to make medicines and drugs. The FBR failed to honor its promise to reimburse the refunds within 48 hours.
Dilawar recommended that the government immediately zero-rate the same and repeal the 17 percent sales tax on the import of raw materials. The industry wants returns based on purchases, not usage, he told the media.
20–25 Percent Increase
In addition, the PPMA has urged the government to permit a 20–25 percent increase in the minimum retail price of medicines in light of rising costs for raw materials, packaging, shipping, rupee-to-dollar parity, and utility costs.
According to the PPMA Chairman, the country’s cash flow issues have caused a lack of raw materials. And input for pharmaceuticals and treatments. While compare to India, where 60–70% of pharmaceutical raw materials produced locally. 95% of Pakistan’s raw materials imported.
PPMA Warned of a Crisis-like Situation
Due to the high cost of inputs/raw materials brought on by the 17 percent sales tax. And the failure to pay sales tax refunds. Usman Shaukat of the PPMA warned of a crisis-like situation and a significant shortage of life-saving medications. As they are not yet equippe to comprehend the true and legal challenges facing the industry. He claimed that FBR will be accountable for this predicament in the pharmaceutical sector.