Budget 2024: OPPI seeks concessional tax rates for pharma players engaged in R&D

New Delhi: The Organisation of Pharmaceutical Producers of India (OPPI) has sought tax rebates for the pharma and biopharma companies engaged in the research and development of innovative drugs. It has also requested for exemption of tax duties on life saving drug imports from the union government.

In a statement, Anil Matai, Director General, OPPI said: “The government’s consistent efforts to boost sector investments in R&D for pharma are commendable. In the last budget, key initiatives were introduced, such as establishing centers of excellence for Artificial Intelligence to enhance manpower skills to develop cutting-edge applications and scalable problem solutions in critical areas including health, announcement of programme to promote research and innovation in the pharma sector through centres of excellence and encouraging collaborative research and innovation by public & private medical college faculty and private sector R&D team through select ICMR labs.”

“These strategic steps underscore the government’s commitment to addressing the industry’s priorities to position India as a global hub for end-to-end drug discovery and boost India’s image as a pharma innovation hub,” Matai added.

“To further support research to develop innovative pharma product, OPPI believes that the concessional tax rates under Section 115BAB of Income Tax Act, 1961 should be extended to companies solely engaged in R&D of pharma as well, beyond those related to manufactured articles. We also hope for the elimination of import duties on life-saving drugs, recognizing that individuals should not bear substantial taxes during health crises. Simultaneously, we call for increased incentives for innovation and to attract foreign investment in advanced research.”

“Emphasizing the importance of Intellectual Property (IP) protection, we recognize that India’s evolution beyond a volume supplier depends on prioritizing groundbreaking innovations. The implementation of these measures would not only strengthen the pharmaceutical and biotech sector but also enhance India’s global standing in innovation and healthcare,” Matai concluded.