Life-saving drugs to cost 6% more in Maharashtra due to VAT

Prices of life-saving drugs in Maharashtra are expected to rise by six per cent following the imposition of four per cent value added tax (VAT).

"The prices of life-saving drugs are expected to increase six per cent due to four per cent VAT on such drugs," Roche Scientific Company (India) Pvt Ltd. (Roche Pharmaceuticals) managing director GL Telang told PTI here today.

Prior to the VAT regime, over 160 medicines that were listed as life-saving drugs under the list prepared by the Health Ministry were exempted from sales tax, excise duty and import duty in the state, he said.

"Now the government has imposed four per cent vat on the maximum retail price (MRP) of life saving drugs including medicines for kidney transplantation and anti-cancer drugs. This will end up with a patient paying six per cent more for his life-saving drugs," Telang said.

Maharashtra sales tax commissioner BC Khatua said the empowered committee on state level VAT is studying the issue and its impact on life saving drugs.

"The committee is actively considering the issue and exploring the idea of having a common list of life-saving drugs. Maharashtra state will follow the list published by the Ministry of Health," he said.