Brace up to pay more for medicines GST regime

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Prices to rise about 4% under the Goods and Services Tax as pharma companies will pay 80% more taxes on average.

Medicine prices will rise about 4% in the new Goods and Service Tax (GST) regime.

A recent report on GST by Nomura said that pharma companies will pay 80% more taxes on average medicines in the new indirect tax regime, which will ultimately be extracted from consumers.

A medicine starts its journey from active pharmaceutical ingredients (APIs) supplier to formulation manufacturer, then to the wholesaler and finally, to the consumer via the retailer. This chain includes value addition and indirect taxes like excise duty and Value Added Tax (VAT).

Medicine prices will rise about 4% in the new Goods and Service Tax (GST) regime.

A recent report on GST by Nomura said that pharma companies will pay 80% more taxes on average medicines in the new indirect tax regime, which will ultimately be extracted from consumers.

A medicine starts its journey from active pharmaceutical ingredients (APIs) supplier to formulation manufacturer, then to the wholesaler and finally, to the consumer via the retailer. This chain includes value addition and indirect taxes like excise duty and Value Added Tax (VAT).

Source: http://www.dnaindia.com/money/report-brace-up-to-pay-more-for-medicines-gst-regime-2236796

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