ISLAMABAD
\nThe Federation of Pakistan Chambers of Commerce and Industry\u2019s Businessmen Panel (BMP) has asked the economic managers of the country to eliminate tax discrimination between different categories of medicines in the upcoming budget 2025-26.
\nIn its budget proposals it called for applying a uniform 1% sales tax rate on all medicines\u2014whether allopathic, homeopathic, or herbal\u2014to ensure fairness, accessibility, and consistency in healthcare taxation.
\nThe issue was discussed in detail during the meeting between Mian Anjum Nisar and a delegation from the Homeopathic Pharmaceutical and Chemist Association Pakistan (HPCA), who met him in the lead of Dr. Amanullah Bismil, Patron-in-Chief of the HPCA on Saturday. The delegation included Dr. Ahsan Waris, Dr. Iqbal Hanif, Dr. Kashif Masood, and Saifurrahman Safi. The representatives shared their concerns regarding the unequal taxation structure, highlighting how it discourages the growth of the alternative medicine industry and limits consumer access to affordable treatment options.
\nChairman of the Businessmen Panel and former FPCCI president Mian Anjum Nisar pointed out that a significant disparity currently exists in the taxation system governing pharmaceutical and health-related products. Allopathic medicines\u2014conventional pharmaceutical drugs\u2014are taxed at a concessional rate of 1%, while homeopathic and herbal medicines are subject to a hefty 18% general sales tax (GST). This difference, he argued, is unjust and harmful, creating a disproportionate burden on consumers and manufacturers of non-allopathic medicines.
\n\u201cThe current tax system promotes inequality within the healthcare sector,\u201d Anjum Nisar said. \u201cOn the one hand, the government claims to prioritize public health and affordability; on the other hand, it penalizes manufacturers and users of homeopathic and herbal medicines with an unjustifiable tax rate. This contradictory policy undermines equitable healthcare access.\u201d
\nDr. Bismil explained that the issue stems from outdated provisions in the Eighth Schedule of the Sales Tax Act, 1990, particularly Entry No. 81, which only refers to drugs registered under the now-repealed Drugs Act of 1976. That Act has since been replaced by the Drug Regulatory Authority of Pakistan (DRAP) Act, 2012, which regulates all therapeutic goods\u2014allopathic, homeopathic, herbal, and nutraceutical. According to Section 32 of the DRAP Act, its provisions take precedence over earlier or conflicting laws. However, the sales tax framework has not been updated to reflect this change, resulting in a legal loophole that excludes non-allopathic medicines from receiving the same tax relief as allopathic drugs.
\nDr. Bismil urged the Ministry of Finance and the Federal Board of Revenue (FBR) to address this gap by amending the Eighth Schedule so that all DRAP-registered medicines are treated equally under the tax regime. He stressed that the amendment should be included in the Finance Bill 2025\u201326 and take effect from July 1, 2025.
\n\u201cThis is the ideal time to correct this policy anomaly,\u201d said Dr. Bismil. \u201cAs budget preparations are underway, the government must take this opportunity to demonstrate its commitment to inclusive healthcare, fair taxation, and support for local industries.\u201d
\nAnjum Nisar supported the delegation\u2019s demands and assured them he would take the issue to the highest level to seek a resolution. He emphasized that millions of Pakistanis\u2014especially those in rural areas and low-income groups\u2014rely on homeopathic and herbal treatments. By taxing these products at a higher rate, the government is restricting access for the underprivileged and effectively pushing patients toward more expensive alternatives.
\nHe further highlighted the economic potential of the alternative medicine sector, which has demonstrated remarkable resilience despite facing regulatory neglect and tax pressures. \u201cPakistan has a rich heritage in traditional medicine systems, including homeopathy, Unani, and herbal formulations,\u201d he said. \u201cIf supported through progressive policy and tax fairness, these industries can contribute billions to the national economy and expand into export markets across the Middle East, Africa, and Asia.\u201d
\nAnjum Nisar added that a uniform 1% tax rate across all medicines would promote transparency, compliance, and a healthier business environment. It would allow all sectors of the healthcare industry to grow side by side, encouraging innovation and ensuring that patients have access to diverse treatment options at fair prices.
\n\u201cThis is not just a tax issue\u2014it\u2019s a healthcare issue and an economic opportunity,\u201d Nisar concluded. \u201cThe government must seize this moment to harmonize the taxation structure, promote equity in healthcare, and support the broader goal of industrial development in Pakistan.\u201d
\nHe warned that maintaining the current dual tax system would continue to distort the market, discourage formalization, and hurt small- and medium-sized enterprises (SMEs) that make up the bulk of the homeopathic and herbal medicine industry.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD The Federation of Pakistan Chambers of Commerce and Industry\u2019s Businessmen Panel (BMP) has asked the economic managers of the country to eliminate tax discrimination between different categories of medicines in the upcoming budget 2025-26. In its budget proposals it called for applying a uniform 1% sales tax rate on all medicines\u2014whether allopathic, homeopathic, or […]<\/p>\n","protected":false},"author":2,"featured_media":329996,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-476260","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n