Pharma industry wants budget to offer more clarity in terms of tax structure

The pharma industry want the government to provide a road map towards bringing down corporate income tax down to 25 per cent

budget

The pharmaceutical industry has asked the government to bring in clarity in terms of tax structure and also provide incentives on research and development (R&D) as part of its budget wish-list.

The industry players want the government to provide a road map towards bringing down corporate income tax down to 25 per cent.

The Indian Drug Manufacturers Association (IDMA), a body comprising mostly home-grown pharma firms said, "All excisable goods used for R&D purposes should be exempted from central excise duty. Introduce parity in the input (12 per cent) and output (6 per cent) rate of excise duty for pharmaceutical products"

Organisation of Pharmaceutical Producers of India (OPPI), representing mainly MNC pharma firms said, "with innovation being high on the government agenda, clarity must be provided for incentives under the National Intellectual Property Policy"

Kanchana TK, Director General, OPPI said, "As innovator company, we look forward to this with great excitement. However, greater clarity (is needed) on what elements will be considered for preferential tax incentives, whether it will apply to outsourced R&D, etc. Incentives are also necessary to boost manufacturing capacity of APIs, rather than depend on Chinese imports"

Pavan Choudary, Director General, MTaI said,"For products where the ability to import substitute is still far away, the high Custom duties should be rolled back.Through Customs duty increases, which are almost passed on to patients, the cost for patients is expected to go up"

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