Bangalore: Those prescribed medicines on a regular basis can expect some relief in their medical store bills from October 2.

The new policy on drugs pricing to be followed from that day stipulates that pharmacies can sell medicines only at or below the retail prices printed on the tablet strips, cartons or bottles and cannot charge any additional amount.

The pricing system for medicines was not too transparent in the city till now. There was a system of some medicine packages marked with the maximum retail price, including taxes, where the consumer knew exactly how much to pay. The second category had the price printed with a "local taxes extra" marking. Many medical stores did not follow a uniform policy in adding the taxes into the bill. After Karnataka opted for value added tax, medicines were taxed at 4 per cent and now the retail prices on packages have to include only this.

The shops themselves cannot add anything to the bills. Under the earlier system, most of the people buying medicines did not ask for bills. But only those eligible for medical reimbursement asked for bills.

So, many shops could getaway by charging an arbitrary "tax extra" amount on the retail price. The Karnataka Drugs and Pharmaceuticals Manufacturers' Association has clarified that prices of all medicines will not automatically come down. The manufacturers and regional distributors may have to work out the maximum retail price for different regions.

The Union Ministry of Chemicals and Petrochemicals has informed that pharma companies need to work out the excise duty and State taxes and work them into the retail prices.

The new regulations exempt medicines already stocked by retailers. The rule will be applied to imported medicines only from March 2007.

The Union Government has said that the National Pharmaceutical Pricing Authority will continue to regulate the prices of all medicines.

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