India: pharma opposes govt price directive

A section of the Indian pharmaceutical industry has opposed a recent government directive that requires all pharmaceutical products to carry maximum retail prices inclusive of taxes (Marketletter May 8), saying the directive contains several anomalies, as well as being premature and inappropriate.

"Though the intent of marking the MRP inclusive of all taxes has long been talked about and is desirable, the timing chosen to bring the same into effect appears to be premature and inappropriate," said the Indian Drug Manufacturers Association in a letter to the Chemicals and Fertilizers Ministry which oversees the drug industry.

The industry's primary concern is the inconsistent tax structure for drugs across the country. "It is essential that the taxes on pharmaceutical products be uniform in all the Indian states for an effective - and legally tenable -implementation of the MRP inclusive of taxes in order to avoid complications arising out of variations in the rates of taxes in different states," the IDMA said.