Islamabad [Pakistan], June 25 (ANI): The Pakistan Pharmaceutical Manufacturers Association (PPMA) on Friday called upon the Pakistan government to abolish the taxes on raw materials concerning the industry citing a shortage of 40 types of medicines and fearing 100 more if their demand is not accepted.
PPMA Chairman Qazi Mansoor Dilawar during a meeting at the Pakistan Parliament apprised the federal ministers of the difficulties being faced by the pharmaceutical industry. "The prices of raw materials have more than tripled. Abolish taxes on our raw materials," Dilawar said.
He urged the Pakistan government to refund Rs 48 billion collected as sales tax on import of raw material and withdraw 17 per cent sales tax on import of raw material, the Express Tribune reported.
He also demanded an increase in the prices of medicines by up to 25 per cent to prevent the collapse of the pharmaceutical industry.
The industry had been suffering from a severe crisis for the last six months but the government was constantly showing a lack of seriousness, Dilawar said.
"Sales tax was imposed and promised to be refunded in this regard ... both the governments have so far collected our refunds of Rs48 billion which the government is not ready to give back due to which they have no more resources to import raw materials.
Dilawar said that the increasing prices of gas, electricity and petroleum products and manpower wages had led to a 45 per cent increase in production costs. He suggested that Pakistan government impose taxes on raw materials used for other purposes than Pharmaceutical products, the Express Tribune reported.
Pakistan Finance Minister Miftah Ismail assured the PPMA chairman that he would get Rs 48 billion refunds released from the Federal Board of Revenue.
Meanwhile, the chairman of the Federal Board of Revenue, Asim Ahmad claimed that the FBR has released Rs 40 million in refunds in the last week. He accused the pharmaceutical companies of buying raw materials tax-free and selling them in the market.
Ismail announced holding another meeting on Monday to resolve the issues, the Express Tribune reported.
During the meeting, Pakistan Ministers Khursheed Shah, Miftah Ismail, Naveed Qamar, Ayaz Sadiq and Nazir Tarar along with the Federal Board of Revenue Chairman Asim Ahmad were present. (ANI)