RCCI lauds abolition of 17% sales tax on pharmaceuticals

RAWALPINDI, June 29 (SABAH):  The abolition of the 17% sales tax on pharmaceuticals will not only make medicines cheaper but will also alleviate the shortage of capital for pharma-related companies to manufacture medicines.

Nadeem Rauf, president of the Rawalpindi Chamber of Commerce and Industry (RCCI), said in a statement that due to the imposition of 17pc sales tax on pharmaceuticals the production of medicines decreased and shortage of life-saving drugs was feared.

RCCI president maintained that RCCI had also presented his recommendations to the government on the removal of 17% sales tax from the chamber’s platform at the All Pakistan Chambers Conference held in January earlier this year.

He said that the sales tax imposed on raw materials had multiplied the prices of medicines. He hoped that the reduction in sales tax would make medicines cheaper and more available. Nadeem Rauf said that Usman Shaukat, Chairman, Standing Committee on Medicine of the Chamber, while playing an active role, had successful negotiations with the government with his team and achieved success.

He said that the chamber has always demanded that tax rates be reduced and incentives be given to pharma like other sectors.