New Delhi, 11 September (IANS). The Goods and Services Tax (GST) improvement will not only make medicines economical, but it will also give a big boost to the country’s pharma market. This information was given in a report.
The media report said that in August, the Pharma sector registered a price increase of 8.7 percent. In the coming time, there will be a wide change in pricing, access and number of patients in this area.
Tax partner of EY India Suresh Nair said, “The tax reform done by the GST Council in the pharma sector is transformational for healthcare.”
Nair said, “By reducing GST from 12 percent to 5 percent on all medicines and giving zero rate on 36 important life -saving medicines, patients’ spending will significantly reduce and improve their reach to the necessary treatments.”
In the 56th meeting of the GST Council earlier this month, the government has reduced the existing four slabs to two (5 percent and 18 percent), while the rates of 12 percent and 28 percent have been abolished.
The government has reduced GST from 12 percent to 33 cancer and rare medicines.
The move is expected to increase the demand for reduced cost burden on patients and to treat high -value therapies, especially oncology and rare diseases.
The report stated that Sanofi, Novartis, Johnson & Johnson, Tekida, GSK, Majen, Bayer and Bohriner Ingelheim’s anti-cancer and rare diseases will also become affordable, which will improve their reach for patients.
Changes in GST rates will be applicable from September 22. With this, the industry is expected to renovate pricing strategies, expand access programs and discover the new market segment.
-IANS
ABS/
