Industry

Sales Tax Issue on Pharmaceutical Raw Material & It’s Post Effects

Karachi, June 14, 2022: Delegate PPMA consisting Vice-Chairman PPMA Mr. Atif Iqbal, Member CEC PPMA Mr. Arshad Mehmood, Member CEC PPMA Mr. Khalid Misbah Ur Rehman, Former Chairman PPMA Mr. Asad Shuja Ur Rehman, Former Chairman PPMA Mr. Hamid Raza, under the leadership of Chairman PPMA Mr. Qazi Muhammad Mansoor Dilawar met Minister NHS, R&C (National Health Services, Regulation & Coordination) Mr. Abdul Qadir Patel dated 10th June 2022 at Parliament house to discuss Pharmaceutical issue specially Sales Tax imposition on Pharma Raw Material and refund mechanism.

In the same line of action delegate also met with other high ups in the parliament house including, Finance Minister Mr. Miftah Ismail, Federal Minister Mr. Ayaz Sadiq, Mr. Ali Pervaiz, Member Finance Committee, Mr. Shahid Khaqan Abbasi, Former Prime Minister.

Chairman PPMA discussed the burning issue at all levels, that, 17% Sales Tax on API’s should be abolished immediately or the refunds should be given on purchase basis. Besides, so far collected sales tax by FBR in four months amounting more than 4 billion from Pharma Industry should be returned immediately enabling smooth cash flow handling by each entrepreneur. 

It’s pertinent mentioning that, if Govt. fails to respond positively to the above said PPMA plea, Pharma Industry of Pakistan may crash badly because of stuck cash flow. Already many small companies are winded up only because of cash flow, which resulted in loss of jobs of millions of workers as well as shortages of many essential medicines including cancer medicines.

It’s disheartening to mention that, despite all logical reasons none of Govt. officials i.e, Ministry of Finance, Ministry of NHS, FBR, honored PPMA’s plea for the sake of Pharma Industry survival. PPMA has decided & intimated to concern authorities of Govt. that, if in next couple of weeks illogical decisions of Sales Tax on APIs were not taken regarding Sales tax on APIs’, then Pharma Industry will be left with no other option except to pass on imposed sales tax to patients through finished products.

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