August 31, 2002	Saturday	Karachi, Jamadi-us-Saani 21, 1423

Please Visit our Sponsor (Ads open in separate window).

ISLAMABAD, Aug 30: An artificial shortage of medicines, antibiotics and essential pain killers has been created after the government’s decision of waiving the 15 per cent general sales tax (GST) on medicines.

The shelves of different chemists and druggists of the twin cities of Rawalpindi and Islamabad are being emptied or medicines on which sales tax is applicable are on display, but no fresh supply is coming in the market.

One of the medicines in great demand is “Ventolin” inhaler, the shortage of which has put the life of asthmatic patients in a misery. Only few chemists retains the stock of this essential medicine and it takes a lot of time to obtain this medicine.

A chemist on condition of anonymity told Dawn that in addition to Ventolin the supply of other medicines in common demand such as Angised used for high blood pressure, Mucaine syrup, Reparil for the treatment of swelling, Aldomet another medicine for blood pressure, Epival for the treatment of psychiatric patients, Renetic, Singluair used by asthmatic patients, Benedryl syrup, Klaracid, an important antibiotic medicine and Losac tablets for ulcer patients, Penicillin etc. was also erratic.

The chemist said sometimes the distributor told them that they had to provide essential medicines in accordance with a “quota” despite the fact that relevant rules of the government binds the manufacturers to manufacture and supply medicines according to the demand.

The chemist was of the view that the shortage had been created deliberately by the multi-national pharmaceutical companies as well as by some local companies to pressurize the government for immediate deregulation of the pharmaceutical industry and introduce amendments in the Drug Act of 1976.

The chemist said sometimes acrimony was created in the shop with customers insisting on to be provided with medicines in shortage or without tax. After the announcement of the withdrawal of sales tax, the customers are not willing to buy medicines with GST, the chemist said.

He said warehouses of the wholesalers and suppliers were full of medicines exempted from GST.

Except for one or two pharmaceutical companies, no company has come forward to withdraw their medicines from the market, he added.

“When we ask the distributors about the shortage, they say that they have yet to settle the issue of refund with the companies and unless it is done, normal supply will not be restored,” the chemist said.

The gravity of the situation can be gauged from the fact that even the Pharma Bureau has accepted that the lifting of tax can cause disruption in supply because presently the government is indicating that no refund will be possible.

The government through August 23 SRO No. 555(1)/2000 has declared that no person shall be entitled to claim or take refund of sales tax already paid or recovered from him.

Meanwhile, the chemist organizations are demanding that the government should intervene and settle the issue.

The chairman of the chemist association in Punjab, Hanif Abbasi, has come up with a proposal that asks the government to refund the sales tax on medicines deducted from August 1 to 22, while the retailers will sell medicines without any GST to the customers and will get the rebate from the suppliers.

The general secretary of the federal branch of Pakistan Chemists and Druggist, Qaiser Mushtaq, while talking to Dawn painted a very gloomy picture and said the shortage of fresh supply had created panic in the market.

He emphasized upon the ministry of health to direct the pharmaceutical companies to settle the tax and supply situation and promptly supply the medicines in the market.