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The Tamil Nadu Pharma Traders Association (TNPTA) has made an urgent appeal to union finance minister Nirmala Sitharaman, urging a compassionate intervention to reform the Goods and Services Tax (GST) regime on life-saving medicines.
In a letter to the minister, signed by president Chola Mahendran, secretary S Saravanan and chairman, G Gurumoorthy, the association emphasized that the current tax structure unintentionally burdens public health access, particularly for essential drugs, impacting both patient affordability and the survival of pharmacies across India.
Identifying themselves not merely as traders but as the ‘first line of access to medicines for millions of citizens’, the TNPTA expressed concerns over the unintended consequences of the GST regime. They stressed that while visionary in its intent, the tax system has inadvertently created obstacles to healthcare, especially for those reliant on critical and life-saving medications, calling for immediate action to alleviate these pressures.
Among their most earnest requests, the TNPTA strongly advocated for the complete exemption of all life-saving medicines from GST. Citing examples like vaccines, blood products, anti-TB, and ARV drugs, which were tax-free before GST implementation, the association argued that these are not luxury items but ‘survival tools.’ They underscored that ‘every rupee saved is a life saved’, urging the government to prioritize patient well-being over tax revenue for these critical medications.
Furthermore, to simplify the complex tax landscape and ensure greater affordability, the TNPTA proposed placing all medicines under a single, minimum GST slab. They pointed out that multiple tax rates lead to pricing confusion, billing errors, and audit difficulties for traders, ultimately increasing costs for patients. The association suggested that if a full exemption is not feasible, unifying the tax slabs would be a crucial step towards a more streamlined and patient-friendly system.
A significant point of contention raised by the TNPTA was the issue of different GST codes for the same drug sold under various brand names. They called for a ‘One Molecule-One HSN Code’ policy to prevent misclassification and harassment of traders, ensuring uniformity and fairness in compliance. This reform, they believe, would make the system simpler and less burdensome for the entire pharmaceutical supply chain.
The association articulated a broader national vision, ‘One Molecule – One Price – One GST’, drawing a parallel with the Prime Minister’s slogan ‘One Nation, One Election.’ This principle, they argued, would ensure fair pricing for all citizens, regardless of their economic status or geographical location, fostering trust, improving access, and strengthening overall healthcare outcomes across the nation.
Concluding their plea, the TNPTA described their appeal as a voice from the ground – from chemists serving rural patients, traders connecting manufacturers to remote areas, and those enabling the last mile of healthcare delivery. They urged Minister Sitharaman to initiate public consultation to reform outdated GST practices, trusting her ministry to act with urgency and compassion, as ‘Lives depend on these decisions’, Mannargudi Ramachandran, advisor to the association, reiterated these sentiments.
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