ISLAMABAD, April 4: The Lahore High Court, Rawalpindi bench, on Thursday issued notices to the health ministry and Central Board of Revenue (CBR) on a constitutional petition filed by a consumer rights group on levying of 15 per cent general sales tax on medicines.

Justice Javed Butter of the LHC Rawalpindi bench admitting the constitutional petition, which was moved by Nadir Altaf Advocate on behalf of the Network for Consumers Protection on March 28, challenging the government decision, directed the ministry and the CBR to submit their replies within 15 days.

The petition contended that the “levying of GST on medicines is ultra vires to the Constitution reflecting unjust, anti-poor, contradictory and inequitable policies of the government.”

The decision, it added, contradicted the poverty alleviation campaign of the government.

It sought to establish a common sense principle that “the people should matter more than revenue when it comes to the issue of the access of the people to the medicines which were special commodities with ever increasing demand.”

The petitioner maintained that public health and commercial interests needed to be dealt in a compatible manner.

Challenging the Ordinance No XVI of 2002 issued on March 21 amending the Sales Tax Act of 1990 for levying of 15 per cent GST on medicines, the petition contended that by virtue of the ordinance the scope of the tax had been enhanced, while the government had exempted the pharmaceutical industry from GST under Sales Tax Act “in the public interest”.

Through another constitutional petition the same petitioner challenged the pricing policy of the government, terming it exploitative and unconstitutional paving the way for rapid increase in the prices of commodities of essential nature.

The court also issued notices to the respondents to furnish their replies to this effect, too, within two weeks.

The government decision invited strong reaction from the consumers, civil society organizations and local druggists and chemist bodies. Sensing the public fury and resentment President Gen Pervez Musharraf ordered withdrawal of the GST on life-saving drugs and setting up of an inter-ministerial committee to review the drug prices and finalize life-saving medicines list. But the consumers rights groups and druggists rejected the government announcement on the plea that all medicines should be exempted from sales tax as all essential drugs are life-saving.