By Our Correpondent
LAHORE: Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Zaki Aijaz; Patron-in-Chief of FPCCI’s UBG Group, S.M. Tanveer; and Patron-in-Chief of the Homeopathic Pharmaceutical and Chemist Association Pakistan (HPCA), Amanullah Bismil, while speaking to the media, stated that a uniform sales tax rate of 1 per cent, equal to that applied to allopathic medicines, should be implemented for homeopathic alternative medicines and health product drugs.
They emphasized that an amendment should be made to Entry No. 81 of the Eighth Schedule of the Sales Tax Act to align it with the DRAP Act 2012. They further said that HPCA Pakistan has identified a significant sales tax discrepancy that is negatively impacting the homeopathic alternative medicine and health product sector.
Currently, the Eighth Schedule of the Sales Tax Act 1990 references “items registered as drugs under the Drugs Act 1976,” whereas this law has been superseded by the Drug Regulatory Authority of Pakistan (DRAP) Act 2012. According to Section 32 of the DRAP Act, the provisions of this Act take precedence over any conflicting laws.
Therefore, FPCCI strongly recommends rectifying this error in the Sales Tax Act by updating it to reference drugs registered under the DRAP Act 2012. This amendment should be enforced starting from July 1, 2024, to eliminate ambiguities and provide relief to relevant stakeholders. This will help Pakistan’s industry to function effectively on a national level and increase exports.
They added that the current tax rate not only hinders the growth of the domestic homeopathic alternative medicine and health products industry, but also violates the principles of fair taxation and equal treatment. Addressing these irregularities will not only promote the homeopathic alternative medicine and health product industry, but will also ensure equal opportunities for all drug-providing companies.
