Drug firms oppose Himachal road tax

Pharmaceutical industry owners in Himachal Pradesh said their industry would collapse if the government does not withdraw a road tax.

"The present tax of Rs 5 per kg on every incoming and outgoing pharmaceutical product will harm the pharma business in the state," said Arun Rawat, general secretary of the Baddi, Barotiwala and Nalagarh Industries Association.

"Representatives of the pharmaceutical industry met top state government officials today to explain their point of view and we hope the government will withdraw the tax immediately," Rawat added.

"Himachal has emerged as the fastest growing region for pharmaceutical industry in the country At present, almost 60 pharmaceutical units including top multinational brands are producing drugs in the state and 750 additional units have registered themselves, largely due to a tax holiday incentive of the government. However, the new road tax will eventually force us to drop business," warned Susheel Khanna, CEO, Vetra Pharmaceuticals.

The new road tax is being imposed on pharmaceutical and 21 other items.

According to industrialists, trucks leaving and entering the state have been asked to pay on the spot "It often works out to around Rs 50,000 per truck" said Khanna.

Government officials said the state had attracted over Rs 92.11 billion due to a tax holiday package extended by the central government since the past two years.