National Pharmaceutical Pricing Authority (NPPA) notifies equivalent maximum retail price after reduction in excise duty on drugs and pharmaceuticals from 16% to 8%
Consequent upon reduction in excise duty on drugs and pharmaceuticals from 16% to 8%, vide Ministry of Finance (Deptt. of Revenue) Notification no. 4/2008 –CE dated 01.03.08 and also in the rate of abatement on drugs and pharmaceuticals from 42.5% to 35.5% vide Ministry of Finance (Deptt. of Revenue), Notification no. 14/2008 –CE (NT) dt. 01.03.08 the prices of scheduled formulation packs have been revised downwards by the National Pharmaceutical Pricing Authority (NPPA), Govt. of India.
In exercise of the powers conferred under DPCO’ 1995, National Pharmaceutical Pricing Authority (NPPA), Govt. of India through Gazette Notification S.O. no. 418(E) dated March3, 2008 has revised the Equivalent Maximum Retail price (MRP) (inclusive of all taxes) of all Scheduled formulation packs downward. As per this notification, all manufacturers are required to reduce the Equivalent Maximum Retail Price (MRP) (inclusive of Excise duty & all taxes) by 4.58%. [For example: For an existing equivalent MRP of Rs. 100, the revised Equivalent MRP (inclusive of all taxes) shall be Rs.95.42]. The above reduction in the Equivalent MRP (inclusive of Excise duty and all taxes) shall take effect immediately in terms of above mentioned two notifications, both dated the 1st March 2008 of the Ministry of Finance (Department of Revenue).
The reduction in prices of such scheduled packs shall however not apply on those categories of scheduled formulation packs where no excise duty has been actually paid to the Government and therefore no excise duty shall be chargeable in the MRP of these scheduled formulation packs.
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