[e-drug] TheNetwork's campaign against GST on medicines "results"

[Azhar Hussain <azhar@thenetwork.org.pk>]

E-drug: TheNetwork's campaign against GST on medicines "results"
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[Congratulations! KM, moderator]

Government of Pakistan has withdrawn 15 percent GST from all medicines and
Minister of Finance Mr.Shaukat Aziz has termed government's decision of
levying GST on medicines as a mistake.

TheNetwork has been working on the "Campaign Against GST" since the day it
was imposed i.e 21st March, 2002. The hard work has produced result and it
is really a moment of joy and releif for the consumers of Pakistan.This
also gives us strength in our continuing effort for the "Campaign Against
Deregulation of Pharmaceutical Sector in Pakistan".

I would like to take this oppurtunity to thank all our colleauges and
friends who has been supporting us in our work.

Cheers,

Azhar Hussain

Press Release

Islamabad, August (        ) Responding to the Government�s decision to
withdraw 15% General Sales Tax (GST) on all medicines, a spokesperson of
TheNetwork for Consumer Protection appreciated the Government�s move in
acceptance of a long standing and strong demand of the consumers. He,
however, was apprehensive of the Government�s intentions in the on going
review of the pharmaceutical policy and termed the draft policy which has
come out recently as �totally consumer un-friendly�.

�We are worried that on one hand the government has withdrawn the GST on
drugs, while on the other, it seems bent  upon deregulating the
pharmaceutical sector, especially drug prices, in favor of the industry. No
doubt, the decision to withdraw 15 per cent GST is a welcome step, but we
will have to be very careful about developments on the new policy as the
anticipated moves by the Government could undo the benefits of GST
withdrawal and leave the net balance in negative ,� the spokesperson said.

The spokesperson urged the government to include consumer representatives in
consultation on the policy amendments and to watch against the incursions of
the vested interest. �We believe that the vested interest groups of the
industry are holding sway in the policy process and it tantamount to a
direct conflict of interest,� the spokesperson said.

The government must be very cautious, while following the policy of
deregulation as any decision that failed to protect the peoples� interest
would be the last straw on the proverbial camel�s back as it would further
hit their already dwindling access to the basic human needs, the
spokesperson maintained.

We strongly reiterate our demand that pharmaceutical policy review must
consult consumer representatives and they  should be included in the team
undertaking the process. Further more, the announced withdrawal of GST must
be effective immediately and all the stock lying in the market should also
be exempted from the tax. Appropriate procedural details for implementation
of the announcement must be made by the relevant Ministry with out any delay
to avoid the mess policy announcement on GST have been making in the market
in the past,� the spokesperson maintained.




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