Consumers win this round, some drugs to cost less

“Though this would mean only a tiny amount to consumers individually, on a state level this would prevent the illegal rotation of crores of rupees each day,” he said. The agreement was signed at a meeting held in Kolhapur, Joshi said.

Chemists and druggists have agreed to charge a maximum of six per cent of sales tax (instead of the current eight per cent) in rural and municipal councils as the octroi tax in these areas have been abolished.

In municipal corporation areas, where the octroi tax is still applicable, the retailers will charge consumers a maximum of 75 per cent of such taxes being levied on them. Earlier the consumers were made to bear 100 per cent of the octroi tax applicable on a product.

Joshi said though retailers were not allowed to levy the `extra charges’ even in existing rules, not much had been done to enforce them. What was significant of the agreement was that it had been reached amicably, at the level of the consumer forum and the retailers without government intervention, a method which the consumer forum sought to popularize.

The forum and retailers have also agreed to form a joint panel at all district levels to redress grievances from retailers and consumers, Joshi said.