Druggists On Strike In Jharkhand To Protest Against VAT Anomalies

by Medindia Content Team on  April 17, 2006 at 6:31 PM Indian Health News
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Druggists On Strike In Jharkhand To Protest Against VAT Anomalies
Jharkhand druggists go on an indefinite strike, protesting against the anomalies in the Value Added Tax (VAT) implemented from April 1.

Medical shops in Jharkhand have downed their shutters for an indefinite period, with the druggist association protesting anomalies in the Value Added Tax (VAT) implemented from April 1.

The Jharkhand Chemist and Druggist Association (JCDA) are unhappy with the multiple tax system in VAT on medicines.

"Despite Finance Minister Raghubar Das' assurance to implement VAT on only maximum retail price (MRP), no notification has been issued. We are opposing VAT at multiple points where tax will be paid on medicines and increase the prices," said Amar Kumar Sinha, general secretary of JCDA.

"There are many states where VAT is implemented only on MRP. Bihar, Orissa, West Bengal, Maharashtra, Karnataka and other states are examples. For the last one year we were demanding the implementation of VAT on only MRP," he said.

To enforce the strike, JCDA will stage demonstrations in all the 22 districts and submit memorandums to respective district administrations.

State health secretary Shivendu called the strike illegal. "The government will take action against them and might even consider cancelling the licences of the druggists," he said.

--Edited IANS

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