The Hindu : Medical shops' bandh on March 25

Online edition of India's National Newspaper
Sunday, Mar 23, 2003

Southern States

Southern States - Andhra Pradesh-Hyderabad

Medical shops' bandh on March 25

By Our Special Correspondent

HYDERABAD March 22. Medical shops all over the State will be closed on Tuesday in protest against introduction of the Value Added Tax system on sale of medicines. The bandh is being observed in response to an all-India call given by the All-India Organisation of Chemists and Druggists.

However, the A.P. Chemists and Druggists Association has made arrangements for sale of medicines to needy patients on bandh day.

Those in urgent need of medicines on Tuesday should contact the association for medicines, the State association president, Ramesh Chandra Gupta, told a press conference here on Saturday.

Addressing a press conference, Mr. Gupta said the introduction of VAT on medicines would shoot up the prices by at least 25 per cent.

The tax collection on sale of medicines in the State currently stood around Rs. 180 crores which would correspond to a total turnover of around Rs. 1,800 crores per annum. "Under the proposed VAT structure, the tax would be 12.5 per cent on the first point of sale itself. At every point of sale tax burden would be passed on to the consumer and this is nothing but a draconian proposal,'' Mr. Gupta said.

He explained that presently medicines were available to the consumer on MRP plus 7 per cent local taxes.

As per VAT proposals tax would be levied on every point of sales. Medicines would be sold on MRP plus 16.75 per cent local taxes which may include tax or levy paid and or payable to the Central and State Governments. "This only means that medicines will be expensive by at least 8 to 9 per cent since tax is only every point of sale.''

The association leaders said those requiring medicines on bandh day should contact the association on Phone 23232348 or the association president, Mr. Ramesh Chandra Gupta on 98490 37433 or Dr. Ghisulal Jain on 56889923 or Mr. N.S. Sree Ramulu on 94400 52106.

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