The amended Finance Bill 2022 to be approved tomorrow (Wednesday) is expected to reduce sales tax on pharmaceutical raw materials from 17 to one percent at the import stage to facilitate the sector.
The assurance has been given by Minister for National Health Services, Regulations and Coordination, Abdul Qadir Patel, and Finance Minister Miftah Ismail to the Pakistan Pharmaceutical Manufacturers Association (PPMA).
Under the amended Finance Bill, the 17 percent sales tax will be reduced to only one percent on the import of active pharmaceutical ingredients (APIs).
The previous government had imposed a 17 percent sales tax on APIs resulting in the blockage of running capital of pharma manufacturers and shortages of essential medicines.
Chairman Pakistan Pharmaceutical Manufacturers Association (PPMA) Qazi Mansoor Dilawar also announced the provision of medicines worth Rs. 50 million to government hospitals every year free of cost.