ISLAMABAD: The Pakistan Pharmaceutical Manufacturers Association (PPMA) has threatened to shutdown factories if the government failed to withdraw a 17 percent tax on the import of medicinal raw material.
According to details, Pakistan’s pharmaceutical industry has given a five-day ultimatum to the government to withdraw a 17 percent tax on the import of medicinal raw materials.
The decision was taken during an emergency meeting of Pakistan Pharmaceutical Manufacturers Association chaired by President Qazi Mohammad Mansoor Dilawar.
Addressing the participants, the PPMA president pointed out that the production cost of medicines has increased by 100 percent amid the economic crisis in the country.
Dilawar said the prices of a number of materials such as bottles, aluminium, and impulse glass, as well as electricity and gas rates, were continuously rising and the government also imposed sales tax on them.
“Moreover, the government has imposed sales tax on import of raw material which is not being reimbursed despite a commitment by the government,” he said, adding that it has become impossible for the pharmaceutical industry to make more drugs.
He pointed out there was a risk of medicine shortages and price hikes of essential drugs if the government would not accept these demands. “The government should refund Rs40 billion in pretext for sales tax and increase the prices of medicines by 20 percent”, the PPMA president demanded.