Sales tax hike to 18% expected to raise medicine prices

Sales tax is also imposed on diagnostic kits/equipment across various specialities, including cardiology, neurology, oncology, and urology 

The government has increased the sales tax rate from 1% to 18% on raw materials used in producing pharmaceutical components, a move likely to increase drug prices. 

The Finance Bill 2024 proposes that the standard sales tax rate will apply to all items under Chapter 30 of the First Schedule, with certain exceptions under the Customs Act 1969. 

The bill also suggests adjustments to the Sales Tax Act and the Customs Act to remove certain exemptions for pharmaceutical products.

The standard 18% sales tax is also imposed on medical treatment and diagnostic kits/equipment across various specialities, including cardiology, neurology, oncology, and urology. 

Additionally, goods supplied to charitable hospitals with 50 or more beds, as well as commodities imported by non-profit institutions, will be subject to the 18% sales tax. 

The government has also imposed a 20% sales tax on the import of other medical items, such as syringes, needles, and catheters.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

IMF set to approve $7 billion bailout for Pakistan in August

The International Monetary Fund (IMF) Executive Board plans to convene in mid-August to deliberate on Pakistan's $7 billion bailout package. A staff-level agreement between...