ISLAMABAD, March 28: The civil society, consumer rights groups and druggists on Thursday launched a countrywide campaign against levying of 15 per cent general sales tax (GST) on medicines and challenged the government decision in court.

The decision was taken unanimously at a meeting of the representatives of consumer rights groups, civil societies, NGOs, chemist associations and economists.

They also filed a petition with the Lahore High Court Rawalpindi bench challenging the imposition of the tax.

The high court has already issued notices to the health ministry and pharmaceutical companies in a separate petition against the government for allowing three and four per cent increase in the essential and decontrolled drugs.

Both the petitions are piloted by The Network, a civil society organization working for consumer rights protection.

The meeting, organized by The Network, rejected the GST on drugs and vowed to continue the campaign until the government withdraws its anti-people decision.

They resolved to overturn the government’s “regressive” policy through public pressure.

The meeting was informed that a letter would be sent to President Gen Pervez Musharraf on Friday expressing public concern over the imposition of the tax.

The meeting was also attended by representatives of Sustainable Development Policy Institute (SDPI), Aurat Foundation, Human Rights Commission of Pakistan, Sungi, Oxfam, Actionaid, Independent Bureau on Human Issues, SPO and labour leaders.

Former surgeon-general, Army, Lt-Gen Mahmood Ahmad Akhtar, economist and journalist Ahmad Aftab, SDPI director Shahrukh Rafi Khan, executive director, Fateh Mohammad Chaudhry, a well known economist and former employee of the IMF and , senior vice-president Islamabad Chemist and Druggist Association Raja Sadaqat spoke at the meeting.

Similar meeting would be organized in Rawalpindi on Friday that would be rolled over to other cities of the country to mobilize public opinion.

The participants were of the view that the GST on medicines would further restrict people’s access to health care as the price of medicines will soar.

In Pakistan the poor are the most vulnerable to infectious and other diseases due to their harsh and unhygienic living conditions, malnutrition, poverty, inadequate public spending by the government and inadequate health facilities available to them, the participants emphasized. “The poor are the most in need of the health services and yet not able to afford them,” they deplored.

Lt-Gen Mahmood Akhtar was of the view that due to the insensitive drug policies the medicines which were very cheap have been gradually moving out of the market after flooding expensive substitutes. The GST will further increase the prices of already expensive medicines.

Ahmad Aftab said the unholy nexus between the ministry of health and multinational pharmaceutical companies have given rise to the smuggling of drugs and goods worth Rs6 billion annually.

He insisted that before imposing the GST, the prices should be rolled back to their original tags and then the cess should be levied.

Dr Shahrukh Rafi quoted a 1998-99 household expenditure survey to establish that the poor spend 6.14 per cent of their income on medicines as compared to the rich who spends 3.9 per cent.

He deplored that the 7-point agenda of President Musharraf laid great emphasis on poverty alleviation while many schemes were introduced during the last budget, but the recent decisions negate government’s will to eradicate poverty.

Due to the wrong pricing policy, the prices of medicines available in Pakistan were 10 times more than available in the neighbouring countries like India.

He suggested that the entitlement enjoyed by the military personnel which were heavily burdening the national exchequer should be reduced while the poor should be brought in the list of entitlements.

Raja Sadaqat informed that the chemists association has already given a strike call, if the government fails to reverse the decision within 22 days.

Fateh Mohammad Chaudhry said that the government should withdraw the 15 per cent GST on medicines as revenue could be generated upto Rs30 billion instead of Rs4 billion by imposing 10 per cent GST on smuggled goods. Dr Zafar Mirza of the Network was of the view that the government by levying 15 per cent GST on medicines has fulfilled its commitment to the IMF that it would raise the tax.