LAHORE: Drugmakers have urged the government to reconsider its decision to impose a 17% general sales tax (GST) on raw materials and finished pharmaceutical products, to avoid a shortage of essential drugs in the country, in addition to saving drugmakers from liquidity crisis. The request was made during a meeting of representatives of the pharmaceutical industry at a meeting chaired by the organizer of the LCCI Standing Committee on Health, Shamim Akhter. The purpose of the meeting was to discuss the situation resulting from the imposition of GST on raw materials used by drug manufacturing units.
Participants noted that the imposition of 17% GCT on raw materials for drugs and finished products would create serious cash flow problems in the pharmaceutical industry, which could disrupt the smooth production of drugs in the country. Addressing the meeting, she said the imposition of the GST would cause a serious problem for medium-sized pharmaceutical companies that did not have much capacity to handle sales tax issues. She said there were several small drug manufacturers in the country, which were not registered with the GST system. She said the GST was likely to create serious financial problems for drugmakers, as sales tax refunds remained pending for several years.
Copyright Business Recorder, 2022