Medicines may become cheaper as panel recommends capping of profit, cutting drug prices

A report by an inter-ministerial committee has made recommendations that trade margins trade margins of costly drugs be capped at 35% of maximum retail price.

Last Updated: Mar 09, 2016, 11:45 AM IST
Medicines may become cheaper as panel recommends capping of profit, cutting drug prices

Zee Media Bureau

New Delhi: A report by an inter-ministerial committee has made recommendations that trade margins trade margins of costly drugs be capped at 35% of maximum retail price, as per a newspaper report.

The Times of India report said that a high level panel has recommended a “different slab for lesser priced medicines”.

“For products priced at Rs 2 per unit, the margin may be capped at 50%” TOI said.

There have been complaints that the companies are making significant profits which go up to few thousand percent.

It may be recalled that last month,the Central Board of Excise and Customs (CBEC) last week issued a notification withdrawing exemption of levy of basic customs duty on as many as 74 drugs.

The medicines on which customs duty will now be imposed include the ones used for treating kidney stones, cancer chemotherapy and radiotherapy, life-threatening heart rhythm disorders, diabetes, Parkinsons disease, bone diseases, antibiotic to treat infections.