Biotech cos pushes for fiscal incentives

Biotech cos pushes for fiscal incentives

India's biotechnology industry is pushing the government for fiscal incentives, import duty exemption and correction of policy that gives MNCs higher drug prices than local producers, ahead of the Union budget.

Industry officials said the Indian biotech sector has a unique opportunity to build scale and leadership in manufacturing, Research and Development.

"We therefore need import duty exemption on equipment and instrumentation," said biotech veteran and CMD of Biocon Kiran Mazumdar-Shaw.

The industry also needs 200 per cent weighted average tax deduction on all R&D and patenting costs, she said.

"Currently we are allowed 150 per cent weighted average tax deduction and only covers domestic patenting costs. This is short-sighted in view of the fact that international patent filings are key to the biotech sector," she said.

Officials in the sector have also called for fiscal incentives such as sales tax and excise duty exemption for a five-year period from the date of commercialisation.

Mazumdar-Shaw said indigenous biotech products must have more favourable terms than MNCs, who enjoy higher prices from the National Pharma Pricing Authority (NPPA). "Only India has such a skewed policy that acts against its own industry!" she quipped.

Biotech cos pushes for fiscal incentives

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