ISLAMABAD, May 27: The Ministry of Health has requested the Federal Board of Revenue (FBR) to withdraw custom duties and sales tax on raw and packing material used for pharmaceuticals to maintain drug prices in the country.

Speaking at a press conference here on Tuesday, Pakistan Pharmaceutical Manufacturers’ Association Chairman Kashif Sajjad Sheikh said that the health ministry had made this request on the appeal of manufacturers to boost the local industry.

He said the decision would help maintain prices of locally manufactured medicines to keep them within the reach of the poor.

He also appealed for exemption of all items relating to pharmaceutical industry from imposition of 35 per cent margin.

“This will help produce quality medicines besides ensuring availability of life-saving drugs in the markets.”

Kashif Sajjad said that the ministry was taking interest to resolve the problems of pharmaceutical industry and requested that the industry should be allowed to adjust their prices according to SRO-471.

He said an increase of more than 100 per cent in the prices of numerous active and inactive raw and packing materials have increased a burden on pharmaceutical manufacturers.

He said the sales tax paid at import and procurement stage could not be passed on to consumers as currently it was being exclusively borne by manufacturers.

He said that the industry is dependent on imports for its manufacturing operations due to the fact that there was limited or no indigenous production of material or equipment.

He said the local manufacturing industry caters to almost 80 per cent of the domestic requirements of drugs.

He added the industry was facing big challenges due to increasing international material prices and maintaining standards.

He said around 400 drug manufacturing units were functioning in the country with the export figure of $100 million.—APP