Indian Rx retail prices to include local taxes

Indian drug Maximum Retail Price will, for the first time include local taxes from July 1. Currently, this is exclusive of local taxes and the MRP is printed on medicine packets with the legend "local taxes extra." Concerned government officials said the Ministry of Chemicals and Fertiliser overseeing the drug industry will issue a notification for the purpose seeking, among other things, to amend the Drug Prices Control Order 1995.

Officials said the notification is expected this month and the Ministry is now in the process inviting proposals from different players. Officials said the amendment in prices is a complicated process involving a number of changes on the part of drugmakers. Hence, the ministry has invited suggestions from the drug industry."We are trying to stick to a deadline of July 1," one official said.

The move has been initiated due to frequent consumer disputes over the present price setting mechanism. While MRPs are statutorily fixed under the DPCO 1995, the actual selling prices vary from one state to another due to divergent local taxes.