Haryana pharma sector seeks reduction in VAT on drugs
Haryana''s pharmaceutical industry has sought from state Finance Minister Ajay Yadav to reduce VAT on medicines and provide power at subsidised rate to boost the sector.
March 04, 2011 / 19:22 IST
Haryana's pharmaceutical industry has sought from state Finance Minister Ajay Yadav to reduce VAT on medicines and provide power at subsidised rate to boost the sector.
In a memorandum submitted to Yadav, Haryana Pharmaceutical Association General Secretary T C Kansal said the Union Finance Minister had not granted any relief to the entrepreneurs of the Haryana in general budget. "Now the industries of the state were depending on the consideration of Yadav," he added.Kansal said the pharmaceutical industries had been paying 5.25% VAT on its production, while the neighbouring states like Himachal Pardesh and Uttrakhand had been charging simply 1% sales tax on medicinal products.He demanded the sales tax on medicine should be brought on par with that of neighbouring states.He said the Punjab government had exempted sales tax on some life saving drugs and the medicine used in AIDS and cancer. The finance minister should also consider this while finalising the state Budget, which is expected to be presented on March 9, he said.Kansal said the rate of electricity for industrial use had been raised in a big way. He demanded the pharmaceutical industries should be supplied power on subsidised rate to reduce the rate of daily consumable medicines. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!