Budget Wishlist | Scrap customs on life savings drugs: Pharma sector

Budget Wishlist | Scrap customs on life savings drugs: Pharma sector
Comment E-mail Print Share
First Published: Mon, Feb 18 2008. 01 02 PM IST

Updated: Mon, Feb 18 2008. 01 02 PM IST
New Delhi: The Organisation of Pharmaceutical Producers of India (OPPI), has sough a number of concessions for the industry, in its pre-Budget memorandum submitted to the Finance Ministry.
The list of demands includes, among other things:
• Extension of tax incentives for R&D up to 31 March 2017 from 31 March 2012
• Reduction of penalties to 0-40% from the current 100-300%, for transfer pricing adjustments. OPPI says its demand on this score is in sync with global practices
• Imported life saving drugs currently suffer customs duty of 5-10%. OPPI wants this to be brought down to nil
• To make medicines affordable to masses the Excise Duty should be halved to 8%. The abatement should be increased to 55% from existing 42.5%
• Tax holiday for export of biotechnology, healthcare, R&D, clinical trials and services to be implemented and extended beyond Assessment Year 2009-10
• 100% deduction in profits for operating and maintaining Hospitals in rural areas to be extended from 31 March 2008 to 31 March 2012; should include hospitals beyond rural areas to stimulate growth of medical tourism
• Extension of exemption from import registration and licensing available to SEZ units to EOUs.
Comment E-mail Print Share
First Published: Mon, Feb 18 2008. 01 02 PM IST