KARACHI, March 26: Condemning the recent imposition of general sales tax (GST) on medicines, participants of a seminar urged the government not to levy such taxes unless there was a consensus in the four provinces on the issue.
The seminar on “the imposition of 15 per cent GST on medicines”, was held under the aegis of Muttahida Qaumi Movement at Karachi Press Club on Tuesday. Through a resolution it said the government should immediately withdraw the anti-people GST on medicines.
Another resolution said that till the issue of provincial autonomy was resolved completely, not only the education and health sectors be taken out from the concurrent list of the Constitution, but the entire list be eliminated.
People from various walks of life, including doctors, drug sellers, and social and political personalities, spoke. The seminar was presided over by deputy convener of Muttahida’s coordination committee Aftab Ahmad Shaikh.
The chancellor of Ziauddin Medical University, Dr Asim Hussain, said the imposition of GST would cause hike in billings done by hospitals on account of medicines from the present 40-45 per cent to 60-65 per cent. He maintained that people needed to pay more not for doctors or other health facilities at private hospitals, but it were the payments made for medicines that were increasing and over burdening the people because of the government’s faulty drug policies.
He stressed the need for reviewing the country’s drugs policy, as bureaucracy and advisers at the helm of affairs could cause a greater gap between the government and the masses. He referred to the free-hand given to pharmaceutical companies and maintained that at least 30-35 per cent of their budget was being spent for their recreation and entertainment.
He claimed that the IMF had got its people inducted in the bureaucracy for achieving its objectives. The concerned quarters had not been taken into confidence before taking the decision on taxing, he added, and urged the government to withdraw the GST.
A leader of drug wholesaler community, Hanif Billo, said the GST would ultimately cast adverse effects on local pharmaceutical companies.
He said multinational companies were using the IMF for making more profit, while attempts were being made to eliminate the local pharmaceutical companies, most of which were based in Karachi.
He said medicines, particularly the life-saving drugs, were free from taxes in many countries of South Asia.
Renowned playwright Fatima Surraiya Bajia said it was heartening to see that political parties were raising voice against the imposition of tax on medicines. She urged the government not to ignore public sentiments on the issue and take decisions in the interest of the people.
The newly elected president of Karachi Press Club, Sabihuddin Ghausi, said there was no justification for imposition of such taxes as majority of people were poor, who, among other things, were even deprived of basic facilities, like proper sanitation, education, health and security.
He lamented the role of political parties which never resisted such taxes imposed one after another during the last ten to twelve years.
Mr Aftab Shaikh said the imposition of 15 per cent GST on medicines was unjustified. He observed that there was a circle of multinationals, local manufacturers, wholesalers, medical professionals, government officials and retailers, which never cared for the consumers and always tried to increase their earnings.
“We strongly condemn the government for its decision and demand that the whole affairs related to medicines and drugs be handed over to the provinces,” he added, saying that the decision to increase medicine prices was taken at the behest of the IMF to benefit the multinationals.
He urged the government to review the decision as it was not going to match with its plan of poverty alleviation in the country. It would be a failure of the government if it did not realise the sufferings of the poor, he added.
Nasreen Jalil, who placed the resolutions of the seminar for approval before the participants, said the GST on medicines would further deprive the poor people of basic facilities.
