The association has pointed out that government has increased the import duty by eight per cent and subsequently brought down to four per cent. Also, during the last fortnight, the Indian rupee was devalued by more than eight per cent. In addition, the Modvat credit is being made available only to the extent of 95 per cent. All these factors are having a deleterious effect on `formulation' pricing with the industry not being able to absorb this cost unless immediate measures are taken by the government to compensate actual increases due to factors beyond the industry's control.

The latest burden is the introduction of various types of taxes at various state levels. For example, Maharashtra has introduced purchase taxand sales tax thus making products made in Maharashtra unviable. This will not only affect the avialibility of products for domestic consumers but will also affect industry's competitiveness on the export front.

The government on the one hand says the association was eager to provide medicines to Indian citizens at reasonable pries; but on the other hand, the central as well as state governments do not miss an opportunity to raise taxes to meet their ever-rising expenditures. In effect, they are a tax on health, particularly on those who are least able to bear such imposts.

This will result in a rise in imports and will overshoot export figures if the Union Government i.e., the Ministry of Finance, Ministry of Chemicals and Fertilisers and the Ministry of Health as well as the various state governments do not take appropriate and timely action.

Under the guise of so-called reforms initiated by the Central and State Governments, the Industry has been subjected to harassment and has been left busy sortingout day-to-day problems that have arisen out of ill-conceived amendments to existing rules.

Amendments, followed by clarifications to these amendments, have become a part of life for the industry. Over and above all this, different Collectors and Commissioners interpret these amendments in complete disregard to its adverse effect on the industry.

Generally, it is worked out that, on every rupee a consumer spends, approximately 40 paise goes to the Government kitty.

On the export front various taxes have been imposed at the State level which are not recoverable in any form and which adds to the cost of production for export purposes.

On the one hand the Central Government designs strategies and works out policies for export promotion; but on the other, various taxes are imposed at state levels which ultimately nullify the planning and policies of the central government in respect of export promotion. This is a clear example of how the central and state governments work at cross- purposes resulting inlosses to both the industry and the Nation.