An official said the commerce and industry ministry is actively working on the issue with the finance ministry.
• Drug maker lobby plans to take up tax issues facing pharma industry
New Delhi :
With the preparation of the Union Budget, India's pharmaceutical industry has been demanding duty cuts for key inputs and raw materials besides duty incentives for exporters.
The Pharmaceuticals Export Promotion Council of India (Pharmaxsil), a body set up by the Ministry of Commerce and Industry, is seeking inputs from the Indian Drugs Manufacturers Association (IDMA). The drug maker's lobby plans to take up tax-related issues facing the pharmaceutical industry, and wants the government to retain existing customs duty exemptions and reduce duties on certain pharmaceutical products.
An official said the commerce and industry ministry is actively working on the issue with the finance ministry.
“We have received several suggestions for the Union Budget for the pharma sector. Firstly, include the pharmaceutical sector in the Remission of Duty and Taxes on Export Products (RoDTEP) scheme. RoDTEP is not an incentive to remain competitive in business but a reversal of duty. The objective of the scheme is to refund the duties, taxes and levies paid by the exporters 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 should be included in RoDTEP scheme.
"In addition, we have received proposals to introduce research and development incentive schemes that are administratively easy to implement and allow 200% weighted principal deduction," the official said.
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