AiMeD Urges
Govt To Reduce GST On Certain Medical Devices From 18 to
12%
The
Association of Indian Medical Device Industry (AiMeD) has
requested various measures including reduction of Goods
and Services Tax (GST) on certain medical devices from 18
per cent to 12 per cent among others, in order to avoid
the firms slipping their loan repayment even though the
announcement of a financial scheme to build healthcare
infrastructure is a welcome move.
In a letter
to finance minister Nirmala Sitaraman, Rajiv Nath, forum
coordinator, AiMeD said that there are supporting policy
enablers required so that the loans do not become non
performing assets and projects for medical devices to be
financially profitable.
“We are
delighted with the government announcement of a financial
scheme to build healthcare infrastructure which is
including diagnostic services & medical devices
manufacturing, with a 7.95% interest and for the first
time Government of India is being the loan guarantor which
will definitely help to partly address the 15% disability
factors that have been making India over 70% imports
dependent (last years imports at Rs. 45,000 crore),” he
said.
Apart from
the GST reduction, the Association also referred to its
demands including introduction of a predictable nominal
tariff structure matching the mobile phone industry to
protect investors; monitoring maximum retail price (MRP)
of Importers in bills of entry as data to enable capping
of two to four times over first point of sale (when GST is
charged 1st time).
The other
demands include that the government should give price
preference based on QCI’s Quality Certification in Public
Healthcare Procurement as permissible under GFR 153. It
should also seek the customs to enforce restrictions on
imports of pre- owned equipment over 3 years and labeling
(MRP, Country of Origin and Manufacturers & Importers name
and address).
No export
restrictions & phasing out of various duty exemption
notifications on medical devices as announced by the
finance minister in this year’s Budget.
The
Government has announced Loan Guarantee Scheme for
Covid-19 Affected Sectors (LGSCAS) to provide guarantee to
scheduled commercial banks for loans given for new
projects, both greenfield and brownfield, related to
healthcare infrastructure. The Scheme was approved by the
Union Cabinet on June 30, 2021 and the loans are made
available at a cheaper interest rate of 7.95 per cent.
LGSCAS
provides a guarantee of 50 percent for brownfield projects
and 75 per cent to greenfield projects for loans
sanctioned up to Rs.100 crore, set up at urban or rural
locations other than 8 Metropolitan Tier 1 cities (Class X
cities). For aspirational districts, the guarantee cover
for both brownfield expansion and greenfield projects is
75%. The Scheme is applicable to all eligible loans
sanctioned up to March 31, 2022, or till an amount of Rs.
50,000 crore is sanctioned, whichever is earlier.
The finance
minister, in a webinar on building healthcare
infrastructure for new India, emphasised that the most
important support to healthcare infrastructure is to ramp
up capacities, technology, better facilities and above all
ramp up trained manpower for optimally utilizing the
healthcare infrastructure.
“With such
team work & enabling policies we can become globally
competitive and in 5 years we can increase our exports
from Rs. 20,000 crore to over Rs. 50,000 crore, increase
investment in this sector to over Rs. 50,000 crore and
stall and reverse our ever increasing import bill which
surpassed Rs. 45,000 crore last year,” added Rajiv Nath.
http://pharmabiz.com/NewsDetails.aspx?aid=142318&sid=1
EXCLUSIVE I Modi Govt Sets
Up Panel to Frame New Laws for Medicines, Cosmetics,
Medical Devices
The Modi govt has asked the
newly formed panel to submit the draft of the new Act by
November 30. Industry experts say it will take at least
one year to notify the new law.
The Narendra Modi government
has formed a panel to frame new laws for medicines,
cosmetics and medical devices, News18.com has learnt. The
newly formed eight-member panel, headed by the drug
controller general of India, VG Somani, will submit the
draft document by November 30.
According to India’s apex
regulatory body, Central Drugs Standard Control
Organisation (CDSCO), the Drugs and Cosmetics Act, 1940
regulates the import, manufacture,
distribution and sale of drugs and cosmetics. Recently, it
was amended to add medical devices.
According to the internal
order, accessed by News18.com, “The government has decided
to constitute a committee for framing/preparation of New
Drugs, Cosmetics and Medical Devices Bill so that New
Drugs, Cosmetics and Medical Devices Act can be framed.”
The other members of the
panel include Rajiv Wadhawan (director, Ministry of Health
and Family Welfare), Dr Eswara Reddy (joint drug
controller), AK Pradhan (joint drug controller), IAS
officer NL Meena followed by drug controllers of Haryana,
Gujarat and Maharashtra.
“The committee shall
undertake pre-legislative consultations and examine the
present Act, previously framed Drugs and Cosmetics Bills
and submit a draft document for a de-novo Drugs, Cosmetics
and Medical Devices bill,” said the order dated 27 August.
The order is titled ‘Constitution of Committee for Framing
of New Drugs, Cosmetics and Medical Devices Act’.
New Act is the need of an
hour: Industry.
In 2020, the Ministry of
Health and Family Welfare had brought medical devices
within the regulatory ambit, treating them as a category
of ‘drugs’ for the purpose of regulation. According to the
pharmaceutical industry experts, a new Act is the need of
the hour. “The Act is completely obsolete as it was formed
in 1940. Since 1940, it has undergone multiple amendments.
It has now become very confusing and unclear for the
industry,” said an official representing a lobby group of
top pharmaceutical companies.
“If the government has
started the process now, it will take at least one year to
notify the new law as the draft will first go to Lok Sabha,
Rajya Sabha and then to the President.”
Another official representing
a pharmaceutical firm said, “The act doesn’t talk about
anything latest. For instance: It does not allow online
sales of medicines as it dates back to the
pre-Independence era. We need the latest act immediately.”
However, industry experts
pointed out that the panel must contain officers from
several other fields. “This is a huge conflict of interest
to create such a committee without representation from
other stakeholders like manufacturers, doctors, academia,
scientists and consumer or patient bodies,” said Rajiv
Nath, forum coordinator, Association of Indian Medical
Devices Industry.
https://www.news18.com/news/india/exclusive-modi-govt-setsup-panel-to-frame-new-laws-for-medicines-cosmetics-medicaldevices-4178255.html
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