Drug manufacturers have urged withdrawal of customs duties and Value Added Tax (VAT) on import of raw materials used in manufacturing anti-cancer medicines.
They made the demand to create a level playing field for the local manufacturers as the import of anti-cancer medicines are currently enjoying VAT and duty benefits.
Bangladesh Association of Pharmaceuticals Industries (BAPI) urged the National Board of Revenue (NBR) to withdraw the duties and VAT at a pre-budget meeting, chaired by NBR Chairman Md. Nojibur Rahman at the NBR headquarters in Shegunbagicha on Thursday.
BAPI representative Abdul Malek Chowdhury said hundred percent of the anti-cancer medicines were imported few years back, but now all such medicines are now being manufactured in Bangladesh.
Bangladesh now manufacture 98% of medicines and also exports those to over 50 countries, he said, adding the government should provide special attention to the sector.
Placing their demands for the budget for fiscal year 2015-16, Malek stressed on reduction of customs duties on import of specialised racks used in preservation of medicines and pharmaceutical laboratory furniture to ensure international standard quality.
Currently, 25% customs duty, 5% regulatory duty and 20% supplementary duty are imposed on rack used for pharmaceutical industries.
Abdul Malek demanded that the board should fully exempt the supplementary duty and regulatory duty from the product, while it should set customs duties at 5% from the existing 25%.
They also demanded to follow the same structure for the pharmaceutical laboratory furniture, which they use for quality control in product development laboratories.
The association also said withdrawal of customs duties is needed for import of azithromycin test mask, which is used for child patients. Currently, there is 10% customs duty imposed on the product.
The other demands from BAPI includes imposition of customs duties at 10% from the existing 25% on empty hard gelatin capsules, and allow the drug manufacturers to send samples of at least 5% based on the invoice, without paying any VAT.
Currently, the manufacturers can spend Tk30,000 annually for providing samples.
