Economic Reporter :
The government is mulling a plan to exempt VAT against all kinds of life-saving drugs to pave way to help reduce sufferings to the patients, sources said.
The National Board of Revenue (NBR), to this effect, has sought a complete list of life-saving drugs from the drug administration to exempt those from paying value-added tax during the new VAT regime that begins from July this year.
The VAT wing of the revenue board in a letter requested the director general of the Directorate General of Drug Administration to send the list on an emergency basis so that the tax authorities could include the names of the medicines in the VAT exemption list.
The DGDA will have to mention the generic and brand names of the medicines and their descriptions and customs heading numbers and HS code numbers, the letter that was issued recently said.
NBR officials said that it was essential to include the names of life-saving drugs in the first schedule which contains the names of VAT-exempted goods and services of the new VAT and Supplementary Duty Act-2012 as the law limits the scope of VAT exemption.
The schedule deals with VAT exemption at the stages of supplies and imports.
According to the schedule, any supply or import of prescribed life-saving drugs are VAT exempted.
But the law does not give further details of life-saving medicines and names of the medicines.
The government or the revenue board will not be able to provide any VAT exemption once the new law comes into effect as the law keeps no scope for providing VAT exemption at supplies and imports stages through issuing gazette notification, officials said preferring anonymity.
The government is mulling a plan to exempt VAT against all kinds of life-saving drugs to pave way to help reduce sufferings to the patients, sources said.
The National Board of Revenue (NBR), to this effect, has sought a complete list of life-saving drugs from the drug administration to exempt those from paying value-added tax during the new VAT regime that begins from July this year.
The VAT wing of the revenue board in a letter requested the director general of the Directorate General of Drug Administration to send the list on an emergency basis so that the tax authorities could include the names of the medicines in the VAT exemption list.
The DGDA will have to mention the generic and brand names of the medicines and their descriptions and customs heading numbers and HS code numbers, the letter that was issued recently said.
NBR officials said that it was essential to include the names of life-saving drugs in the first schedule which contains the names of VAT-exempted goods and services of the new VAT and Supplementary Duty Act-2012 as the law limits the scope of VAT exemption.
The schedule deals with VAT exemption at the stages of supplies and imports.
According to the schedule, any supply or import of prescribed life-saving drugs are VAT exempted.
But the law does not give further details of life-saving medicines and names of the medicines.
The government or the revenue board will not be able to provide any VAT exemption once the new law comes into effect as the law keeps no scope for providing VAT exemption at supplies and imports stages through issuing gazette notification, officials said preferring anonymity.
