E-drug: Pakistan: Sales Tax on Medicines (cont)
---------------------------------------------
Update:
Drive against GST on drugs launched: Decision challenged in LHC
Dawn, 29th March 2002.
By Nasir Iqbal
ISLAMABAD, March 28: The civil society, consumer rights groups and
druggists on Thursday launched a countrywide campaign against levying
of 15 per cent general sales tax (GST) on medicines and challenged
the government decision in court.
The decision was taken unanimously at a meeting of the
representatives of consumer rights groups, civil societies, NGOs,
chemist associations and
economists. They also filed a petition with the Lahore High Court
Rawalpindi bench challenging the imposition of the tax.
The high court has already issued notices to the health ministry and
pharmaceutical companies in a separate petition against the
government for allowing three and four per cent increase in the
essential and decontrolled drugs. Both the petitions are piloted by
The Network, a civil society organization working for consumer rights
protection.
The meeting, organized by The Network, rejected the GST on drugs and
vowed to continue the campaign until the government withdraws its
anti-people decision. They resolved to overturn the government's
"regressive" policy through public pressure.
The meeting was informed that a letter would be sent to President
Gen Pervez Musharraf on Friday expressing public concern over the
imposition of the tax. The meeting was also attended by
representatives of Sustainable Development Policy Institute (SDPI),
Aurat Foundation, Human Rights
Commission of Pakistan, Sungi, Oxfam, Action aid, Independent
Bureau on Human Issues, SPO and labour leaders.
Former surgeon-general, Army, Lt-Gen Mahmood Ahmad Akhtar, economist
and journalist Ahmad Aftab, SDPI director Shahrukh Rafi Khan,
executive director, Fateh Mohammad Chaudhry, a well known economist
and former employee of the IMF and , senior vice-president Islamabad
Chemist and Druggist Association Raja Sadaqat spoke at the meeting.
Similar meeting would be organized in Rawalpindi on Friday that
would be rolled over to other cities of the country to mobilize
public opinion. The
participants were of the view that the GST on medicines would further
restrict people's access to health care as the price of medicines
will soar.
In Pakistan the poor are the most vulnerable to infectious and
other diseases due to their harsh and unhygienic living conditions,
malnutrition, poverty, inadequate public spending by the government
and inadequate health facilities available to them, the
participants emphasized. "The poor are the most in need of the
health services and yet not able to
afford them," they deplored.
Lt-Gen Mahmood Akhtar was of the view that due to the insensitive
drug policies the medicines which were very cheap have been gradually
moving out of the market after flooding expensive substitutes. The
GST will further increase the prices of already expensive medicines.
Ahmad Aftab said the unholy nexus between the ministry of health and
multinational pharmaceutical companies have given rise to the
smuggling of drugs and goods worth Rs6 billion annually. He insisted
that before imposing the GST, the prices should be rolled back to
their original tags and then the cess should be levied.
Dr Shahrukh Rafi quoted a 1998-99 household expenditure survey to
establish that the poor spend 6.14 per cent of their income on
medicines as
compared to the rich who spends 3.9 per cent.
He deplored that the 7-point agenda of President Musharraf laid
great emphasis on poverty alleviation while many schemes were
introduced during the last budget, but the recent decisions negate
government's will to eradicate poverty.
Due to the wrong pricing policy, the prices of medicines available
in Pakistan were 10 times more than available in the neighbouring
countries like India.
He suggested that the entitlement enjoyed by the military personnel
which were heavily burdening the national exchequer should be
reduced while the poor should be brought in the list of entitlements.
Raja Sadaqat informed that the chemists association has already
given a strike call, if the government fails to reverse the decision
within 22 days.
Fateh Mohammad Chaudhry said that the government should withdraw the
15 per cent GST on medicines as revenue could be generated upto Rs30
billion instead of Rs4 billion by imposing 10 per cent GST on
smuggled goods. Dr Zafar Mirza of the Network was of the view that
the government
by levying 15 per cent GST on medicines has fulfilled its commitment
to the IMF that it would raise the tax.
Azhar Hussain
Project Coordinator Pharmaceuticals
TheNetwork for Consumer Protection
40-A, Ramzan Plaza, G-9 Markaz
Islamabad
Pakistan.
Tel:00-92-51-2261085
Fax:00-92-51-2262495
Azhar Hussain <azhar@thenetwork.org.pk>
--
To send a message to E-Drug, write to: e-drug@usa.healthnet.org
To subscribe or unsubscribe, write to: majordomo@usa.healthnet.org
in the body of the message type: subscribe e-drug OR unsubscribe e-drug
To contact a person, send a message to: e-drug-help@usa.healthnet.org
Information and archives: http://www.healthnet.org/programs/edrug.html