LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday has expressed concern over the government’s decision to impose a General Sales Tax (GST) on raw materials for medicines in the mini-budget.
In a statement, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Khawaja Shahzeb Akram strongly opposed this 17% sales tax on the pharmaceutical sector.
“Withdrawal of exemptions and imposition of 17pc sales tax will increase people’s miseries and cause the economy to shrink and stagnate,” he said.
Shahzeb said, unfortunately, budgeting and policymaking had been done without consulting stakeholders. In the health sector, taxes have also been levied on medical devices, raw materials used in medicines, making treatment more expensive.
This imposition of 17 percent GST on raw materials will increase the prices of medicines. This move will make it difficult for poor people to get treatment for their sick family members, he added.
Khawaja Shahzeb further said that the government had imposed a tax of Rs160 billion on the pharmaceuticals sector in the mini-budget, severely affecting the pharma industry.
Given the current situation, the pharmaceuticals sector cannot afford this tax. The government’s decision has severely affected the availability of medicines.
Copyright Business Recorder, 2022
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