No excise duty on relabelling of drugs to comply with pricing order

The finance ministry has exempted drugmakers from the excise duty on repacking or relabelling to ensure smooth transition to new drug price regime. This exemption would be available for 45 days after the prices of the essential drugs are notified by National Pharma Pricing Authority. The government has asked the pharma companies to ensure that the essential drugs they market have the prices mandated by the new drug price control order within 45 days of the price notification comes into effect. The finance ministry decision means drugmakers will not have to pay excise duty once more on the essential drug packs which have already been sent out of their factories and they choose to carry out the re-printing, relabeling at sites other than the facilities, registered under Central Excise Act.

Source : Economic Times