Govt to withdraw import duty on 51 active pharmaceutical ingredients
The government has proposed the complete withdrawal of import duty on 51 new raw materials used in the manufacture of active pharmaceutical ingredients (APIs) to make medicines more affordable for consumers in the domestic market.
Moreover, to make the domestic pharmaceutical industry more capable and self-reliant in producing affordable and economically viable anti-cancer medicines locally, the government has proposed amending the existing notification on concessional customs duty facilities by adding nine more raw materials for import.
For all latest news, follow The Daily Star's Google News channel. 
The import duty and VAT on these materials will be reduced to zero, the finance minister said in his budget proposal.
To sustain the growth of Bangladesh's pharmaceutical exports in the international market, he also proposed including 17 additional basic raw materials in the existing notification on concessional facilities and reducing the import duty on these materials to zero percent.
The government has been facilitating the pharmaceutical sector because local drug manufacturers will have to pay royalties to foreign companies for patent rights after the country's graduation from the group of least developed countries (LDCs) to a developing nation, which is scheduled for November this year.
There is a possibility that medicine prices in the domestic market will increase if manufacturers have to pay for patent rights to produce medicines.
Therefore, the government has been encouraging manufacturers to invest more in APIs so that they do not have to pay for patent rights acquired from foreign companies.
Bangladesh is scheduled to graduate from the LDC group to a developing nation this November, unless the transition period is extended.
The country will also lose the benefits it currently enjoys under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) framework.
The government will also maintain and strengthen policy support for the API (Active Pharmaceutical Ingredient) industry in the areas of infrastructure, research and investment.
In the context of graduation from LDC status, the continued development of the pharmaceutical industry, enhancement of its innovation capacity, and strengthening of its position in the global market should be supported through necessary financial incentives and favourable policy measures.
A sustainable and modern global medicine and vaccine supply network should be established so that essential medicines and vaccines can be delivered to remote areas in a timely manner.
Comments