ISLAMABAD, Aug 16: The National Tariff Commission (NTC) is considering a proposal to increase customs duty on import of Cefixime — a pharmaceutical raw materials — from 10 per cent to 25 per cent to provide protection to the local industry.

An official announcement here on Tuesday said that the proposal was under consideration. Pharmagen Limited, a pharmaceutical bulk drug manufacturer, moved an application, seeking an upward revision of duty on the import of raw material.

The NTC has invited views, suggestions and proposals from all parties having an interest in the business relating to or associated with in seven days. A public hearing was scheduled for September 1 at the NTC.

Pharmagen is producing semi-synthetic penicillin (ampicillin/amoxycillin) since 1993 and semi-synthetic cephaloporins (cephradine and cephalexin) since 2000 and supplying these drugs to local and multinational pharmaceutical companies in Pakistan.

The semi-synthetic penicillin plant is operating at only 41 per cent of its capacity. Due to low capacity utilization, the plant is incurring a loss since its commercial production in July 2001. In order to increase the capacity utilization and achieve profitability, Cefixime has been launched but due to non-availability of tariff protection, the company is unable to compete with imported product, mainly from India.

The Cefixime project cost is Rs52 million. Without tariff protection for the Cefixime project, even after meeting full demand of approximately 7.5 tons, would incur loss of Rs22 million, which could be converted into profit of Rs9.7 million, if proposed tariff protection is granted to them, the applicant observed.