E-drug: Delayed GST withdrawal mechanism-neglects the interest of consumers
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Press Release
December 03, 2002
Islamabad.... TheNetwork for Consumer Protection has condemned the
insensitive attitude of the CBR officials towards the consumers in case
of GST refund on medicines. According to news reports appeared in a
section of press, CBR has amended its previous SRO regarding GST refunds
paid on the medicines in July-August 2002. The amended SRO facilitates
the manufacturers and importers of medicines who now will be able to
claim GST refunds on the medicines supplied during the period from
August 1 to 23 but the SRO does not allow the consumers to claim refund
of GST which they had to pay even after several weeks of formal
announcement of GST withdrawal. Says a press release issued here today.
A spokes person of TheNetwork for Consumer Protection recalled that
President General Pervaiz Musharaf had announced the withdrawal of GST
on medicines in third week of July but hundreds of thousands of poor
patients around the country had no way except paying in the name of
General Sales Tax even months after formal announcement of withdrawal of
GST. There had been a sever shortage of essential drugs after formal
announcement of president Musharaf due to failure of CBR officials in
evolving mechanism of refund GST paid on existing stocks. The
manufacturers and distributors of drugs kept refusing to provide GST
exempted drugs to consumers and consumers had to pay millions of rupees
in the name of GST during the months of July and August.
Azhar Hussain, Project Coordinator, Pharmaceuticals said that TheNetwork
for Consumer Protection had pointed out well in time that the consumers
are unlawfully being charged GST on drugs and CBR is delaying in
announcing a comprehensive mechanism for refund of GST on existing
stocks. "It is regretful to note that CBR officials not only
unnecessarily delayed in fulfilling their legal duty but they also
neglected the interests of consumers- the ultimate payers of GST.
Government had to withdraw GST on drugs on persistent demand of the
consumers who were directly effected by the imposition of GST but when
the GST was withdrawn it was the drugs industry people who were the
ultimate beneficiaries of the decision while the consumers had to face
not only acute shortage of medicines but had to pay excessive money for
many weeks.
The spokesperson also recalled the statement of the finance minister
Shokat Aziz in which he had confessed that the decision of imposing GST
on medicines was proven totally wrong. The Government should allocate
all the money collected from GST on medicines for providing better
health facilities to the poorest consumers of the country as there is no
justification to use this money for any other purpose" , said the spokes
person. He urged the government to include consumer representatives in
consultation on the policy amendments and decisions to watch against the
incursions of the vested interest. "We believe that the vested interest
groups of the industry are holding sway in the decision making process
and it is tantamount to a direct conflict of interest," the spokesperson
said.
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Azhar Hussain
Project Coordinator Pharmaceuticals
TheNetwork for Consumer Protection
40-A Ramzan Plaza, G-9 Markaz
Islamabad
Pakistan
Tel: +92-51-2261085
Fax: +92-51-2261495
www.thenetwork.org.pk
Azhar Hussain <azhar@thenetwork.org.pk>
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