#Budget2022: Zero rating of GST & RODTEP scheme among top demands of pharma & healthcare sector

New Delhi: Around 85% of the people feel that a lower rate of GST on clinical trials and research activities will bring down the cost of pharmaceutical products, according to Grant Thornton Bharat’s pre-budget expectation survey.

To understand the expectations from Union Budget 2022 and gauge the market sentiment, Grant Thornton Bharat conducted a series of surveys across sectors where more than 1,000 respondents participated in these surveys across digital platforms.

The survey also showed that 85% of the respondents expect restoration of a higher percentage of deduction under Section 35(2AB) of the Income-Tax Act, 1961 for R&D expenditure. India Inc expects that innovation and R&D will be the key investment drivers.

Around 81% of the respondents expect pharmaceutical products to be included in the Remission of Duties and Taxes on Export Products (RODTEP) Scheme.

Commenting on the survey results, Bhanu Prakash Kalmath S J, Partner and Sector Leader – Pharma & Healthcare, Grant Thornton Bharat, said, “India’s pharmaceutical industry has played a key role in the global fight against the pandemic. Enhanced outlay under the PLI schemes and encouraging exports and research and development will further advance the ‘Make in India’ vision and consolidate our position as a leading pharmaceutical supplier.”

With regards to the healthcare sector, nearly 78% of the people are favouring a ‘zero-rating’ of GST structure.

More than 55% of the respondents feel that a mix of fiscal incentives and public-private partnerships will encourage private investments in the healthcare area. Permitting expenditure towards healthcare infrastructure as a corporate social responsibility (CSR) expenditure will provide an impetus to investments in rural areas.

Commenting on the results, Bhanu Prakash Kalmath S J, Partner and Sector Leader – Pharma & Healthcare, Grant Thornton Bharat, said, “Availability, accessibility and affordability have been the focus of the government and an increase in healthcare budget allocation to at least 3% of the GDP over the next few years will provide the desired impetus”