July 28, 2002	Sunday	Jamadi-ul-Awwal 17,1423

Please Visit our Sponsor (Ads open in separate window)

ISLAMABAD, July 27: The government is considering adding dozens of medicines to the list of life-saving drugs for exemption from 15 per cent General Sales Tax (GST).

Well-placed sources told Dawn on Saturday that the revised list will be finalized shortly in consultation with the tax authorities.

The official spokesman and Joint Secretary, Ministry of Health, Matiullah Khan, confirmed the preparation of such a list following the president’s directive to this effect. The government had already exempted 256 life-saving drugs from 15 per cent GST in April 2002.

Talking to Dawn by telephone, Chairman, Pakistan Pharmaceutical Manufacturers Associations (PPMA), Mohammad Amin Khan, said they had proposed that instead of adding more medicines to the exemption list the rate of GST should be reduced. In this way, he said, more revenue would be generated.

Khan said that every medicine is meant to save lives, therefore, how could anyone classify them as life-saving and non life-saving.

The government had imposed 15 per cent GST on March 21 on all medicines imported or locally manufactured/supplied to fetch an additional amount of Rs4 billion.

The GST is one of the IMF conditions for releasing the next tranche of Poverty Reduction and Growth Facility (PRGF) programme.