Prices of medicines set to rise as government proposes significant sales tax in Budget 2024-25

In the Katlang area of Mardan district, a distressing incident unfolded as a female school teacher met a Today, the coalition government revealed the budget for the fiscal year 2024-25, bringing forth significant changes that may impact healthcare costs in Pakistan. Notably, one of the key proposals is the introduction of an 18% sales tax on drugs, encompassing medicaments and Active Pharmaceutical Ingredients (APIs).

If enacted, this proposed tax is anticipated to raise the prices of both over-the-counter and prescription medications, potentially affecting millions of Pakistanis reliant on these essential products for their health and well-being. The announcement has prompted immediate concern among healthcare professionals, pharmaceutical companies, and patients alike, with apprehensions that elevated costs could render necessary treatments unaffordable for many.

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Pharmaceutical firms are also cautious about the proposed tax, fearing disruptions to the supply chain and potential limitations on the availability of vital drugs. The forthcoming steps involve potential revisions to the budget before its finalization. Stakeholders from the healthcare and pharmaceutical sectors are poised to engage in intensive lobbying efforts against the proposed tax, aiming to advocate for alternative measures that mitigate the impact on healthcare affordability.