May 26, 2002	Sunday	Rabi-ul-Awwal 13,1423

KARACHI, May 25: The government has in principle agreed to release all consignments of medicines, which were booked and their Letter of Credits (L/Cs) opened prior to the levy of 15 per cent General Sales Tax (GST) on March 21, 2002.

This was decided at a high level meeting held recently under the chairmanship of secretary general finance Moin Afzal and attended by officials from other ministries as well as representatives of chemists and druggists.

It was also decided that those consignments of medicines, which were booked after March 21, 2002, but before the issuance of a list of medicines exempted from sales tax would be released after getting undertaking from importers.

However, this will be finalized only after the Minister for Finance Shaukat Aziz gives his approval as a summery prepared by Member Sales Tax CBR, Falak Afghan, who was present in the meeting, has been forwarded to secretary general finance.

Presently the recommendations of the meeting are lying with secretary general finance Moin Afzal who is expected to submit them in a day or two to the finance minister for final approval.

Dr Mushtaq Noorwala, vice chairman, Pakistan Chemists and Druggists Association (PCDA) told Dawn that in principle it was agreed that those medicines and drugs for which L/Cs were opened before March 21 would be released without collecting sales tax.

Whereas those medicines which were imported thereafter, but before the issuance of exempt list of 256 medicines from sales tax under SRO No 208, of April 5, 2002, would be released on undertaking from importers, he added.

After the issuance of exempt list, Dr Mushtaq said, a lot of anomalies developed and there is a fear that some of medicines arriving after March 21, but before April 5, may include in the exempt list and importers would suffer if GST is charged by customs. Consequently, all such consignments, he said would be released after getting undertaking from importers.

However, he said importers would seek a meeting with the finance minister to suggest complete withdrawal of GST on medicines. If revenue is a matter, he said, the government could generate from other sources.

He said with a war like situation in the region an early decision for resolving the issue by removing GST on medicines will be very much appreciated.

Dr Mushtaq said after the release of huge quantity of medicines and drugs, which are presently lying at the port, the market situation would improve and the drugs shortage would be over.