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Journalism of Courage
There is good news for pharma companies in the Task Force report prepared by Dr Proneb Sen. The report suggested many incentives are needed to boost research and development (R&D) in the pharmaceutical industry.
The report already recommends that excise duty on all pharmaceutical products be brought down to 8 per cent (from 16 per cent), and that the exemption limit of small scale units be raised from Rs 1 crore to Rs 5 crore.
But for domestic pharma R&D, the recommendations, if accepted as they are, will result in an even ‘‘more liberal fiscal regime.’’ It wants benefit of 150 per cent weighted exemption currently offered be hiked to 200 per cent. Also, it suggests that investments on land and building for dedicated research units, expenses on getting regulatory approvals and patent filing abroad be accounted for in depreciation-linked benefits.
