Drugmakers seek duty cuts in budget
1 min read . Updated: 27 Oct 2022, 01:50 AM IST
Premium- The drug manufacturers lobby is planning to raise tax-related issues faced by the pharma industry
NEW DELHI :
With preparations underway for the union budget, India’s pharmaceutical industry is seeking duty cuts for key inputs and raw materials besides duty incentives for exporters.
The Pharmaceuticals Export Promotion Council of India (Pharmexcil), a body set up by the ministry of commerce and industry is seeking inputs from the Indian Drugs Manufacturers Association (IDMA). The drug manufacturer lobby is planning to raise tax-related issues faced by the pharmaceuticals industry, and wants the government to retain the existing customs duty exemption and reduce duties certain pharmaceuticals products.
The ministry of commerce and industry is actively pursuing the issues with the ministry of finance, said an official.
“We have received multiple suggestions for union budget for pharma sector. First, include the pharmaceutical sector in the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. RoDTEP is not an incentive but a reversal of duty to stay competitive in the business. The scheme is aimed at refunding exporters, the duties, taxes, and levies paid by them at the Central, state and local levels. Sustainable growth of pharma exports is difficult in the absence of RoDTEP making it uncompetitive in the global market. In view of this pharma industries must be covered in RoDTEP Scheme," said the official aware of the matter.
“Furthermore, we have received a proposal to introduce research and development incentive schemes which are administratively easy to implement and allowing 200% weighted basic deduction," added the official.
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