In a statement, CRCP said, the government has not taken into consideration the concerns of stakeholders including civil society, medical associations and pharmaceuticals. The government did not even announce the decision prior to its imposition in order to pre-empt the opposition by the consumers, citizens and other bodies.
CRCP said it had written letters to the Chief Executive and the Minister of Finance before the imposition of GST, in which it was urged that the government should not levy GST on medicines, and instead consider alternative sources of revenue generation. Moreover, it was also asserted that the imposition of GST would not only add to the miseries of the poor, but would also adversely affect the indigenous drug industry. However, despite CRCP's intervention, GST on drugs has been imposed.
It was also recalled by CRCP that in March 2000 the Finance Minister, Shaukat Aziz in a meeting with CRCP and Liberal Forum Pakistan had pledged not to impose GST on medicines and unprocessed food items. Shockingly, the government has backed out from its promise and imposed GST on drugs.
It was also added by CRCP that the medicines all over the world are exempted from GST. Given the fact that the prices of drugs are already high in Pakistan as compared to the drug prices in the neighboring countries, the 15% increase in drug prices would create problems for the poor. The GST on drugs, which would earn revenue of Rs. 3 billion annually to the government, would unduly burden the poor. Moreover, it is inconsistent with the commitment of the present regime to alleviate poverty from the country.
CRCP has vowed to launch a campaign against the government measure of imposing GST on medicines. In this regard, CRCP would engage media and civil society organizations in order to lobby for its withdrawal.