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Biotech to get IT-like tax sops, says FM

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Our Bureau Bangalore
Tax benefits given to the information technology sector in the country are likely to be extended to biotech.
 
Speaking after the inauguration of a facility of Biocon Biopharmaceuticals, a Biocon subsidiary, here on Monday, Union Finance Minister P Chidambaram said that "in course of time all benefits and advantages will be given to biotech just like IT. This is to enrich scientific research in the country and also for the development of new drugs to make healthcare affordable." Praising Biocon for its achievements, he said "it is helping us gain world recognition in the biotech sphere."
 
On the issue of 16 per cent excise duty on MRP (maximum retail price) of drugs, mentioned in the Budget, Chidambaram said there would be no reduction. However, companies were free to represent their cases for individual abatement and these would be considered by his ministry.
 
For pharma plants set up in Himachal Pradesh, Uttaranchal and Jammu and Kashmir, the minister said a duty abatement of 45 per cent on MRP was possible if the company took up the issue with the Ministry of Chemicals and Fertilisers, as announced by the government. Speaking on agriculture, Chidambaram said the Union agriculture ministry was expected to unveil a plan for farmers in 30 suicide-hit districts across the country.
 
"Sharad Pawar, the Union agriculture minister, has got a plan approved for 30 districts which were gravely affected by suicides in the past. I think he is unveiling that plan in two weeks' time from today. He (Pawar) had a meeting with chief ministers and agriculture ministers, he said. He said non-availability of credit was but one of the reasons for farmer suicides.
 
"We are addressing that issue. State governments would address other issues. There are (other) reasons why farmers are driven to suicide," he said.

 
 

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First Published: Apr 18 2006 | 12:00 AM IST

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