The Hindu : Front Page : New measures unveiled to make drugs cheaper

Online edition of India's National Newspaper
Sunday, Feb 12, 2006

Front Page

Front Page

New measures unveiled to make drugs cheaper

Special Correspondent

Drug packaging should have data in both English and Hindi

New Delhi: To make drugs cheaper, the Government has proposed several measures including slashing excise duty by 50 per cent, exempting cancer and HIV/AIDS drugs from taxes, and making the maximum retail price inclusive of all levies. Revealing this here on Saturday, Chemicals and Fertilizers Minister Ram Vilas Paswan said drug packaging would have data in both English and Hindi with effect from April 1 this year.

Speaking to newspersons after the first meeting of the Pharmaceutical Advisory Forum, he said a proposal had been submitted to the Finance Ministry to reduce excise duty on drugs from 16 to 8 per cent. States had agreed to levy zero tax on cancer and HIV/AIDS drugs if the Central Government took the first step. He said manufacturers, State Government officials and chemists had agreed to the proposal for which the deadline was April. He said it had been decided that drugs not under price control must not be higher than the MRP and this also would come into effect from April 1. The forum had agreed to have the name, price, production and expiry date of the drug in both Hindi and English. This decision would also begin to be implemented from the same date but the final date for compliance was October 2, Mr. Paswan said.

Free drugs proposal

He said the Government's commitment to provide free drugs to people living below the poverty line (BPL) was also being implemented. Inter-ministerial discussions would begin soon for finding the required resources.

Regarding public enterprises in the drugs sector, he said talks were under way with various States to procure drugs from such companies on a priority basis. He felt this would not only improve the functioning of these companies but also help in making drugs available to consumers.

The forum meeting was attended by health ministers and secretaries, drug controllers, officials from the Centre and States, representatives of drug industry and consumer groups.

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