LAHORE: The medicine manufacturers have urged the government to review its decision imposing a 17per cent General Sales Tax (GST) on the raw materials and finished goods of the pharmaceutical industry, to avoid shortage of essential drugs in the country apart from saving medicines manufacturers from liquidity crunch. The demand was made in a meeting of the representatives of the pharmaceutical industry in a meeting chaired by Convener of the LCCI’s Standing Committee on Health, Shamim Akhter. The meeting was held to discuss the situation arising out after the imposition of the GST on the raw materials used by the medicine manufacturing units.
The participants noted that imposition of 17 per cent GCT on the raw materials for medicines and finished goods would create serious cash flow problems in the pharmaceutical industry which could disrupt the smooth production of medicines in the country. Addressing the meeting, she said the GST imposition would cause a serious problem for the medium-sized drug companies that did not have much ability to handle sales tax issues. She said that there were several small drug manufacturers in the country, which weren’t registered with the GST system. She said the GST was likely to create serious financial problems for the drug manufacturers as the sales tax refund remained pending for several years.
Copyright Business Recorder, 2022