Budget 2014: Drug Makers' Body Seeks Exemptions for R&D, Samples

Indian Drug Manufacturers' Association (IDMA) has asked the government that 'control samples' and samples given to physicians be exempted from duties and taxes in the budget.

In a memorandum sent to the Finance Ministry, the drug makers' body also requested that all excisable goods used for research and development purposes should be exempted from central excise duty, besides allowing exemption for capital goods, raw materials, consumables, and reference standards.

"Pharma manufacturers are required to keep few boxes of each batch of medicine manufactured till its expiry as 'control samples', as per the provisions of the Drug and Cosmetic Act and Rules," IDMA said in the memorandum.

"These cannot be sold and hence, should be fully exempted from Central Excise Duty. Similarly, medicine samples are provided to doctors as 'physician's samples', which should also be kept out of purview of all duties and taxes."

IDMA expects that the weighted deduction of 200 per cent of R&D expenses in an in-house facility will be extended for further period of five years, it said.

The industry body also said the pharma industry has been 'overlooked' in the last few budget presentations.

"This year we expect the dynamic and forward thinking new government to create a transparent atmosphere of confidence and trust and provide suitable incentives and concessions to keep our growth momentum going."