Import of pharma products: PCDA voices concern over new infrastructure cess

KARACHI: The Pakistan Chemist and Druggist Association (PCDA) has raised serious concerns over the imposition of infrastructure cess at the import stage, imposed by the Excise, Taxation & Narcotics Control Department of Sindh.

The PCDA emphasised the detrimental impact this levy has on the import of critical pharmaceutical products.

According to the spokesperson of PCDA Abdul Samad Budhani, pharmaceutical imports consist of life-saving medicines crucial for the treatment of critical diseases, including Cardiology, Oncology, Neurology, and Nephrology. Most of these medicines are not manufactured locally, making their import vital to the healthcare sector.

However, he said, due to the escalating costs associated with the infrastructure cess, many pharmaceutical companies have ceased imports, leaving patients vulnerable and worsening the availability of critical medications.

In a letter addressed to the Secretary of Excise, Taxation & Narcotics Control, Sindh, the Senior Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Saquib Fayyaz Magoon, highlighted the urgency of the situation.

He emphasized the need for a review of the Sindh Development and Infrastructure Cess 2017, which, according to stakeholders, has made the import of finished medicines commercially unviable.

The issue was also previously raised in a letter dated February 27, 2024, but remains unresolved.

“The availability of essential imported medicines is already shrinking, causing grave concerns for patients who rely on these treatments. In the better interest of sustaining medical practices in Pakistan, it is imperative to find a solution,” Magoon stated.

The FPCCI has requested the department to hold a personal hearing with representatives from the PCDA to discuss the issue further and develop a comprehensive strategy to address the matter. The association awaits a response from the Excise Department, hoping for a timely resolution to avert a potential healthcare crisis.

This development comes at a time when the pharmaceutical industry is already grappling with supply chain disruptions and increasing production costs, making the removal or adjustment of such levies crucial to the industry’s survival.