Indian Tax-Free Zones Split Drug Makers Over Excise Tax Cuts
This article was originally published in PharmAsia News
Executive Summary
Although the organization representing India's pharmaceutical industry presents a united voice before the government and its budget proposals, individual firms appear to disagree over the latest tax proposal. India's Union Budget proposal contains a provision proposing a 16 percent excise tax on drug makers not located in tax-free zones. The Indian Drug Manufacturers' Association takes the position the tax should be cut in half for small and medium firms not normally found in tax-free zones. A unified industry proposed a reduction of excise taxes for all drug makers, but the Finance Ministry did not respond, so several large drug makers entered tax-free zones. (Click here for more