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The Karnataka State Registered Pharmacists Association (KSRPA), affiliated to the Federation of Chemists and Druggists of Karnataka, Bengaluru has now objected to the hefty fee hike of sales license fee from Rs.20 to Rs.1000. The Association indicated that its members are concerned over the impact of the draft amendment to the Drugs and Cosmetics Rules 1945. The draft amendment was issued by the government via Gazette notification No.: GSR 1011(E) dated December 29, 2015 and published on January 25, 2016.
“We are filing the objections to modify the proposal,” said Ashokswamy Heroor, president, KSRPA adding that the main concern was the quantum of the rise in fees hike for sales licenses.
The draft guideline has proposed to raise the fees under Rules 59, 62C, 69 and 69A under paras 6 to 10 of the draft notification by over 50 fold of the existing fees. This cannot be equated to the growth in business which ranges from zero per cent to one per cent per year, he added.
“The steep hike is unbearable even to affluent shop keepers. To add to this, due to the mushrooming of pharmacy chain stores, online pharmacy business and unbelievable discounts offered by them are a serious blow to chemists and druggist outlets. The profit earned by ordinary pharmacy outlets has drastically dwindled,” pointed out Heroor.
It can be seen that the proposed increase of licenses for manufacturers under Paras 11 to 28 range from fourfold to fivefold except for a few cases where it is about 8.5 to 10 fold. In fact, the manufacturers and exporters are reaping profits and are capable of withstanding the increase in fees, he said.
In a communique to the ministry of health and family welfare, the president of KSRPA has called upon to slash the increase in fees for pharmacy outlets under Rules 59,62C,69 and 69A) up to fourfold of the present structure.
“We would like to mention that recently the fees were drastically increased from Rs.20 to Rs.1,000 despite our protests. No other trade license fees have been increased in this proportion at such a short frequency,” stated the KSRPA communique.
The Association president further requested the Union government to avoid the hike in sales license fee or restrict the increase up to fourfold of the existing fees.
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