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September 7, 2002
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Saturday
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Jamadi-us-Saani28,1423
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15pc GST on medicines earns Rs1.81bn
By Mubarak Zeb Khan
ISLAMABAD, Sept 6: The tax authorities have raised around Rs1.81 billion through the levy of 15 per cent General Sales Tax (GST) from all kinds of medicines at both import and local stage during the last five months.
Official figures made available to Dawn showed that tax authorities collected Rs848.71 million GST at local manufacturing stage, while it collected Rs335 million at import stage on all kinds of medicines during the same period.
The government has levied the GST on March, 21, 2002 on all kinds of medicines but withdrew on August 23, on massive public pressure.
Around R4 to 5 billion were estimated to be raised annually from the levy as promised with the IMF to qualify for the next tranche of Poverty Reduction and Growth Facility (PRGF).
Informed sources said that around 768 pharmaceutical units were registered with the sales tax department. Of these 650 pharmaceutical units were regularly paying taxes.
Further break up showed that the tax authorities raised Rs27.02 million from GST on manufacturing stage in of April; Rs177 million in May; Rs225.51 million in June; Rs219.57 million in July and Rs200 million in the month of August.
Meanwhile, at import stage, the tax authorities collected Rs65 million in April; Rs60 million in May; Rs85 million in June; Rs75 million in July and Rs50 million in August.
The consumers are yet to get the non-GST paid medicines from the retailers as the government has forbidden the repayment of the amount paid on the unsold stocks. The government has to come up with some modalities to pass on the impact of the withdrawal of the GST to the consumer, said the sources.
A spokesman of the pharmaceutical sector told Dawn that in case the government settled the issue of refund they would immediately replace the GST-paid stocks with fresh ones.
He further asked the government to extend the date of filing of the return for the month of August from September 15 to 30 so that whatever return stocks came the manufacturers may claim the input accordingly.
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