Dear Sir,
This is with reference to the column "Budget Line" that HBL is featuring in the run-up to the budget. Please find below some inputs from Mr. Rajiv Nath, JMD, Hindustan Syringes & Medical Devices Ltd. and Principal Forum Coordinator, Association of Indian Medical Device Industry.
Also attached is picture of Mr. Rajiv Nath. Hope you find this useful.
Indian Medical Device Industry seeks protection for the Indian Medical Device trade and manufacturing in the upcoming Budget 2009-10
The medical device market is currently mainly import dependent and needs a special focus and infrastructure development status at least for the next 5 years in order to make the Indian Medical Devices Industry globally competitive. There is a need for a holistic development and to regulate the industry.
We expect the Government to consider creation of a new 'Medical Export Promotion Council' to promote export and to check custom impasse on the border. We hope that the name of 'Pharmaceuticals Export Promotion Council should be changed to 'Medical Export Council' for enabling the inclusion of Lab ware, Diagnostics and Medical tourism with Medical devices. Medical devices are not medicines, so it should be treated as a separate industry. In the case of import of finished products, the residual life of the product should be at least 2/3rd at the time of import.
We hope the Government abolishes List 37 which consists of 111 medical & surgical instruments and appliances. According to this List, duty on import of components is higher than imported finished devices. This marks a huge loss for the indigenous industry and inhibits growth of Indian manufacturers. Importation of Blood Collection Tube(BCT), used for collection of blood for testing, a custom duty of 7.5% while import of components i.e. glass tube and cap fall under custom duty at 10% which is higher than the finished product. To develop the indigenous market the rate of custom duty on BCT must be increased from 7.5% to over 10% and custom duty on imported components should be reduced from 10% to 5%.
I would expect that the Government brings uniformity in VAT in all states. Some states charge VAT on MRP and others on Invoice value. The VAT should be charged in a consistent manner only on Invoice value which is the transaction value. With the introduction of the VAT, no other form of taxes should be charged on the sale/purchase/movement of goods. There is a need to have reforms in medical laws on fixed period basis, fixation will facilitate tax authorities, assesses, tax advisor more awareness of the amendments in laws and its implementation.
About AIMED:
AIMED - Association of Indian Medical Device Industry comprises of over 700 manufacturers producing a wide range of products - Medical Disposables, Medical Diagnostics, Medical Electronics and Medical Equipments and Implants.
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