August 22, 2002

Islamabad: Consumers have a genuine reason to rejoice withdrawal of GST on medicines. Withdrawal of GST reinforces our confidence in civil action for the furtherance of rights and interests of citizens. After almost six-month vigorous lobbying efforts citizens could win their legitimate demand and they would continue in order to get their basic rights.

Government levied GST on all medicines on 21st March and later due to fierce reaction my both consumers and industry decided to withdraw GST on life saving drugs only on 29th March. However citizens had kept the pressure on for withdrawal of GST from all medicines, given the context of poverty and health services available in Pakistan.

Now this is encouraging to note that due the sustained pressure and concerted efforts by all stakeholders including consumers and industry government has abolished GST on all kind of medicines.

Consumer Rights Commission of Pakistan (CRCP) started its campaign against GST on 22nd March against the imposition of GST and demanded withdrawal of GST on ALL medicines.

It is important to note 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. It was shocking to know that the government had backed out from its promise and imposed GST on drugs

CRCP lobbied with the Chief Executive Secretariat and the Ministry of Finance and 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.

CRCP asserts that government must consult all the stakeholders before taking such decision instead of ad hoc arrangement and situational; reactions.

[Previous]

[Next]