KARACHI: The PPMA has expressed great worry to the government about not approving the pharma industry's demand to abolish sales tax on Medical API. 

PPMA Urges Government To Remove Sales Tax on Medicine API

Since October 2021, the rupee has depreciated by at least 40%. With a 17.5% sales tax, it's clear that life-saving medications will be in short supply due to the increase in price.

Drugs' active components are the compounds responsible for the positive health effects reported by patients. A pharmaceutical drug's active ingredient is known as an active pharmaceutical ingredient (API). A pain reliever containing acetaminophen is an example of an API.

In Pakistan, the price of prescription drugs remains unreasonably exorbitant and out of reach for far too many. Controlling health care costs, which in turn determines affordability, access to care, and improves results, is contingent upon reducing drug prices.

Interview of Pharma Representative With Medical News Pakistan

Pharma industry sources said that the budget is very good under the circumstances. The industry feels that since Pharma is zero-rated and sales tax is eventually refunded, the government should have withdrawn it and as an industry we continue to demand that it is taken back.

Talking to Medical News the industry personnel contacted requested their names to be kept anonymous. They said that Pharma is zero-rated so they have to refund all sales tax paid at the time of purchasing. The refund is based on the consumption of raw materials; it’s a cumbersome process. What is puzzling and a matter of grave concern is that this results in cash flow problems and the industry has to chase them for refunds. Simple they should have made all our inputs zero so nothing to refund, they added