NBR to encourage local production of pharma ingredients
The National Board of Revenue has formed a panel to provide tax and duty benefits to encourage local production of raw materials needed to manufacture drugs.
The committee will examine duties and taxes on the imports of active pharmaceutical ingredients (API) and the cost of the items using the imported materials.
It will also analyse the current situation of pharmaceuticals and API industries in light of treaties on the Trade-Related Aspects of Intellectual Property Rights under the World Trade Organization (WTO) and other international agreements.
The panel, headed by Md Rezaul Hasan, member for VAT policy of the NBR, has been asked to submit its recommendation within a month.
Representatives from commerce and industries ministries, the Directorate General of Drug Administration, the Bangladesh Tariff Commission, the Bangladesh API and Intermediaries Manufacturers Association and the Bangladesh Association of Pharmaceuticals Industries have been included in the committee.
The NBR move came after the commerce ministry announced a national policy on production of the API and laboratory reagents last month.
The policy favours tax benefits to the API and laboratory reagents manufacturers.
A revenue official said the committee has been formed to review the existing duty benefits given to pharmaceuticals and the API manufacturers.
As a least developed country, Bangladesh has been exempted by the WTO from implementing patents and data protection for pharmaceutical products until January 2033.
