The pharmaceutical industry today demanded exemption in income tax in the Budget for promoting research and development (R&D) activities.
"We have seek exemption in income tax under the section 80, for promoting R&D in the pharmaceutical sector," Piramal Healthcare Executive Director Swati Piramal told reporters after India Inc had pre-budget interaction with Finance Minister Pranab Mukherjee.
India is lagging behind from countries such as Canada and Israel in R&D, which is very worrisome for the domestic pharma industry. The provision for the exemption for R&D was there till 2007 and we simply want to revive it, Piramal said.
Besides this, the industry also demanded a decision on the central drug authority bill, which is pending in Parliament for the last five years.
Speaking about other demands which the industry is demanding, she said," There is also a need to boost the consumer spending through reduction in the personal income tax.