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Budget Impact on Pharmaceuticals sector
Overall impact: Positive
Excise Duty
Customs Duty
- Full exemption from all customs duties on Enoxaparin
(both bulk drugs and formulations) withdrawn and a concessional rate of 15%
BCD + 16% CVD + 4% SAD imposed.
Other Changes
- Span of price control has been reduced substantially.
However, the Government has retained power to intervene comprehensively in
cases where prices behave abnormally.
- Weighted deduction of 150% of the expenditure
on in-house research and development in certain areas allowed to companies
has been extended to biotechnology as well for clinical trials, filing patents
and obtaining regulatory approvals.
- The tax payable on the distribution of dividends
of domestic companies reduced to 10% from the current 20%. This is a positive
feature for Pharma companies who have a track record of paying high dividends
Rediff-Dun & Bradstreet Budget Impact Analysis
Budget 2001
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