476 drugs to be exempted from GST

Published August 2, 2002

ISLAMABAD, Aug 1: The ministry of health has submitted to the Central Board of Revenue, the final list of 476 life-saving drugs (LSDs) that are to be exempted from the General Sales Tax (GST).

An official source told Dawn that the health ministry had earlier submitted a list of 217 medicines to the CBR in addition to the 256 exempted from GST on April 4, but later added three more drugs to the additional list of exempted drugs.

The Chemist and Druggists’ Association threatened to observe a countrywide strike against the imposition of 15 per cent GST on drugs, which according to them was levied under the pressure of the IMF and World Bank. However, they later called off their strike when finance minister Shaukat Aziz assured to redress their problems.

In the wake of a public uproar, President Gen Pervez Musharraf recently directed to add more drugs to the list exempted from GST. The CBR is likely to announce the final list in a couple of days, the source informed.

The All-Pakistan Chemist and Druggist Association, Pakistan Pharmaceutical Manufacturing Association and various consumer rights watchdogs declared the old list of 256 exempted LSDs as vague, which had passed over the advantage to certain vested interests instead of the consumers.

They also demanded that the GST should be withdrawn from at least the 470 drugs that were included in the National Essential Drugs List (NEDL) in 1996.

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