January 31, 2003	Friday	Ziqa’ad 27, 1423

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

ISLAMABAD, Jan 30: The drug retailers will get 15 per cent discount on both the locally-manufactured and imported medicines, an informed source told Dawn.

The source said the decision to this effect was made during a meeting, which was presided over by Director General Health Maj Gen Mohammad Aslam (retired).

The meeting was also attended by the representatives of Pharma Bureau, Pakistan Pharmaceutical Manufacturers Association (PPMA), Pakistan Chemists and Druggist Association (PCDA) and Pakistan Pharmaceutical Importers Association (PPIA).

During the meeting, it was decided that though 15 per cent discount would be allowed to the retailers, in the meantime the PPIA and drug importers would file a separate proposal with the Central Board of Revenue (CBR) for rationalisation of duties structures on the imported drugs.

The DG health, however, informed the participants that the health ministry would decide about the issue of rationalisation of duties structure after learning the opinion of the CBR on this issue. The importers have to pay a 10 per cent customs duty on all the imported medicines in addition to 3.5 per cent miscellaneous taxes.

It was also decided that if the CBR or the finance ministry approved any relaxation in the duty structure of the imported medicines, the Pharma Bureau would then approach the ministry of health again for rationalisation of initial price formula for imported drugs along with workable suggestions for its implementation.

The representatives of the Pharma Bureau insisted that the health ministry should revise the formula of drug prices of the imported medicines in view of the present-day commercial realities.

The representative also asked the health ministry to request the finance ministry as well as the CBR to withdraw the currently imposed 10 per cent customs duty on all imported finished medicines, as it was very difficult for them to give 15 per cent retailers discount in view of huge customs duties.

Withdrawing of the 10 per cent customs duty would help a lot in providing relief to the importers on medicines, the bureau representative suggested during the meeting.

The representative of the PPIA also agreed to the opinion of the Pharma Bureau that the price formula should be revised to rationalise the prices.

Meanwhile, the PPMA stood on its earlier view that the 15 per cent discount should be paid to the retailers on all drugs. They urged implementation of the provision of Rule 35 of the Drugs (Licensing, Registration and Advertisement) 1976 because they were following the law from the very beginning.

The PCDA submitted that they were not demanding any extra privilege and all they wanted was implementation of the law.