Mumbai, Jan 25 (KNN) With less than a week left for the Union Budget to be presented by Finance Minister Arun Jaitley, industry has demanded more clarity in terms of tax structure and incentives on Research and Development (R&D) in the pharmaceutical sector.

Pharmaceutical Micro, Small and Medium Enterprises (MSMEs) are also expecting the income tax rate to be reduced to 25 per cent.

With a view to introduce the balance in the rate of excise duties, Indian Drug Manufacturers Association (IDMA) said that all excisable goods used for R&D purposes should be exempted from central excise duty.

While according to the Organization of Pharmaceutical Producers of India (OPPI), as the government always stressing over innovation, “there must be a clarity for incentives under the National Intellectual Property Policy,” it added.

OPPI added that incentives are also necessary to boost manufacturing capacity of Application Program Interface (API), rather than depending on Chinese imports.

Emphasizing the need of exemption of central excise duty IDMA said that exemption of central excise duty for physician samples as in line with exemption from levy of VAT is the need of the hour.

On the other hand, Medical Technology Association of India (MTaI) appealed that the high Custom duties should be rolled back for products where the ability to import substitute is still far.

He said import duties on medical devices and equipment have already been increased by 7.3 per cent for most items.

Basically Pharma bodies has demanded before government that all excisable goods used for R&D purposes should be exempted from central excise duty which according to them further increases the production level in the MSMEs. (KNN)