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Pharmaceutical industry: Duty slashed to 5% on import of raw materials, ingredients

By Sajid Chaudhry

ISLAMABAD: The pharmaceutical sector has been allowed incentives on import of raw materials and active ingredients on concessionary rates of duty in the budget to tap the export potential existing in the world markets.

The pharmaceutical industry has strongly represented it in the pre-budget consultation process and has gained much-needed incentives for enhancing exports from the country. Some key incentives are also expected in the forthcoming Trade Policy 2009 that will be announced in the third week of July, official sources informed.

In the budget customs duties have been reduced from 25 percent and 10 percent to just 5 percent on import of 19 types of raw materials and active ingredients as well as chemicals.

Active pharmaceutical ingredients and chemicals: Now onwards, customs duty has been reduced on import of aflacalcidole, flurbiprofen, aspirin, amlodipine, loratadine, pantoprazole sodium, deferirone, lamivudine, risedronate sodium, moxifloxacine, atorvastatin, glicalazide, clarithromycin powder, azithromycin, fusidic acid, gentamycin, rifampicine, propyl parabean sodium salt and casein to 5 percent.

Medicines and vaccines: Customs duty on 8 types of medicines and vaccines has been exempted at import stage from earlier 10 percent on salbutamol, beclomethasone aerosol, ipratropium bromide aerosol, sodium fusidate injection, alfacalcidole injection, analgesic medicated plaster, sorafen and cetumimab.

Diagnostic kits: Customs duty on import of 4 types of diagnostic kits has also been lowered from 20 percent to 5 percent in the budget like breast cancer kit, blood cancer kit, cervical cancer kit/HPV kit, vitros diagnostic kit. Other medical instruments: Customs duty on import of stents, coils, catheters, particles, balloons, fileters, lignators, and guidewires used for oncology, neurology, gastroenterology, urology and pripheral interventions has been reduced from 5 percent to 0 percent.

Packing materials: Customs duty on import of packing materials has been reduced from 25 percent or 20 percent to just 5 percent on import of polyacrylate, piston caps, laminated heat sealable paper, kraft paper (wax coated) non-woven fabric and non-woven paper.

Pharmaceutical products exports have been increasing from the last four years and it is expected that the industry would gear up its efforts for tapping export potential in regional as well as exports markets in African countries. staff report

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