ISLAMABAD: Chemists likely to hold protest demonstration: Imposition of 15pc GST
By Our Staff Reporter
ISLAMABAD, May 25: Chemists and druggists are likely to hold a protest march from Rawalpindi to the presidency to pressurize the government to withdraw its decision of imposing 15 per cent GST on medicines.
Chairman of Chemist Association Punjab and president of Markazi Anjuman-i-Tajaran Rawalpindi Mohammad Hanif Abbasi said repeated cancellation of scheduled meetings on GST on medicines by the government had forced the chemists and druggists association to call a protest meeting on Tuesday to chalk out a future line of action.
“The dilly dally tactics of the government has shattered our confidence and greatly disappointed us. Therefore, we have called the meeting after which we may hold a protest march,” he said.
He said the meeting would also decide on holding a countrywide strike to press the government to accept their demand of withdrawing GST on medicines.
He said the meeting would be presided over by Haji Hanif Billo, the chairman of the All Pakistan Chemists and Druggists Association, who would specially come from Karachi to attend the meeting.
He said the earlier countrywide strike call for April 25 had been postponed as the entire state machinery was involved in the presidential referendum.
All Pakistan Chemists and Druggists Association had earlier given a strike call for April 25, but decided against it after Finance Minister Shaukat Aziz assured them that their demands would be given due consideration.
The indecisiveness on the part of the government on the issue of GST had even created a row between the medicine suppliers and the hospital administrations, since the suppliers were pressurizing the hospitals to accept the medicines with 15 per cent GST. However, the hospitals were demanding supply without tax. This situation has also created medicine shortage in the hospitals, he claimed.
Mr Abbasi said the local suppliers and shopkeepers were also under intense pressure because the pharmaceutical companies were providing medicines after deducting 15 per cent GST, but were not ready to give any rebate on medicines in case of the expiry of the medicines or brokerage.
The government, while announcing the 15 per cent GST on medicines, had failed to devise any formula to deal with expiry or brokerage — a situation which has added much confusion, he said.
The retailers were also reluctant to place orders to purchase medicines in bulk from the suppliers due to this confusion, he added.
Hanif Abbasi said the government’s intention to deregulate the pharmaceutical industry was another issue which if implemented would make it difficult for poor patients to purchase the medicines. If the policy is implemented, the prices will increase to 600 per cent, he claimed.
After the chemist association had postponed their earlier strike, the government constituted a three-member ministerial committee to hold talks with the druggists association on the question of GST on medicines.
The government, after much delay, had even announced May 16 as the date when a committee, comprising Finance Minister Shaukat Aziz, Health Minister Dr Abdul Malik Kasi and Commerce Minister Abdul Razzak Dawood, would have met with representatives of All Pakistan Chemists and Druggists Association. Later, the government without assigning any reason postponed the meeting.
“We have been greatly disappointed by the finance minister and have no hopes whatsoever from him, his ministry and CBR,” Mr Abbasi said.
“We appeal to President Musharraf to intervene in the issue and meet our delegation and hear our reservations. There is no use talking to people below him,” he said.
He said, among other options, the chemists at their meeting would discuss whether or not to go on a strike for indefinite period from June 1 to protest against the GST on medicines.
“We’ll most probably wait and see till May 31 before deciding about it,” he said.
“We do not want to take up confrontation with the government in view of the heightening tensions with India, but we are being compelled to start agitation,” Mr Abbasi said.
