Page 152 - CW E-Magazine (10-12-2024)

Pharmaceuticals Hydrocarbons

‘Pharma Connect Congress’, which Biologics. Other noteworthy sessions were and infrastructure barriers in advanced TAX REFORMS
addressed pivotal themes shaping the on ‘Advance your Research Decisions therapies. The day concluded with the
pharma landscape. Sessions included on Biosimilars with Confi dence’ led by prestigious India Pharma Awards 2024, December GST meet to consider inclusion of natural
discussions on continuous innovation Dr. Dennis McCullough – Vice Presi- celebrated outstanding achievements in
and agile manufacturing for next-gene- dent, Global Sales, CAS; and ‘Navi- innovation and excellence within the gas in its ambit
ration therapeutics, moderated by gating the Complexity of Biosimilar pharmaceutical industry.
Dr. Mahesh Bhalgat, Group CEO & MD, Manufacturing’ by Dr. Sanjeev Gupta, The Union fi nance ministry has of 14% on compressed natural gas. Gas, Gujarat Gas, GAIL, and Petronet
Veeda Clinical Research Ltd., and Sr. Vice President - Advanced Biotech Focus on sustainability received a proposal from the petroleum Prashant Vasisht, Senior Vice Presi- LNG would hugely benefi t from the
insights into India’s position as the Lab, IPCA Labs. Day 2 saw a focus on sustainability ministry for inclusion of natural gas dent–corporate ratings, Icra said that proposed regime.
“Pharmacy of the World” with cost- and leadership within the pharma and under the ambit of the Goods and Services by inclusion of natural gas under GST,
effective generics and biosimilars, led Pharma Leaders Roundtable biopharma sectors. Key sessions ad- Tax (GST), and will likely take it to the the companies producing will have to However, experts say that some
by Dr. Rhonda Duffy, Executive Vice- Day 1 also featured the ‘Pharma dressed critical sustainability challenges, GST Council as it meets in Rajasthan’s pay lower taxes, which will bring down states – such as Maharashtra, Andhra
President & Chief Operating Offi cer, Leaders Roundtable’, a closed-door alongside insights into navigating Jaisalmer on December 21. the cost of operations. “If that benefi t is Pradesh, Gujarat, Rajasthan & Uttar
Biocon Biologics. session for senior leaders to explore environmental regulations, and a fi reside passed on to the consumer, they would Pradesh – which earn substantial reve-
trends and challenges. Discussions chat on adopting green chemistry in drug The GST Council includes the State benefi t too. The inclusion would largely nues from VAT on natural gas may not
The Congress also highlighted the highlighted leveraging geopolitical discovery. Governments too, and it typically takes benefi t upstream companies as well necessarily agree for the inclusion of
challenges of adopting digital tech- shifts, such as the Biosecure Act, to decisions via consensus. as sectors throughout the value chain,” gas in GST.
nologies, with a panel moderated by enhance India’s CDMO sector, inte- The ‘Women in Pharma Round- he said.
Dr. Mandar Ghatnekar, Global Head grating AI and machine learning for table’ spotlighted the evolving role of The petroleum ministry is pushing Still, since most of them are ruled
IT & Digital Transformation, Biocon effi ciency, and addressing regulatory women in the sector. for the inclusion of natural gas in GST, While naphtha is currently under by the National Democratic Alliance
as it feels it will be benefi cial for the the GST ambit at the rate of 18%, (NDA), there is a possibility the pro-
OPPI ANNUAL SUMMIT 2024 petrochemical value chain. The cur- petroleum products – diesel, petrol and posal may be accepted at the council.
India’s pharma sector set for rapid growth; CXOs rent structure of paying multiple taxes ATF– are outside the GST. Many State According to Jefferies, in FY23, the
on gas, the incidence of which differs Governments are reluctant to agree to total VAT collections from natural
call for ecosystem collaboration across the states, is seen to have a the proposal of having auto fuels under gas was about Rs 23,000-crore across

EY Parthenon (EY-P) and The where policymakers, providers, pharma Value of Innovation cascading nature. the GST, given that VAT on these pro- India.
ducts are a major source of autonomous
Organisation of Pharmaceutical Producers companies and patient advocates collabo- During the Summit, the bilingual Natural gas is a major industrial revenue for them. On its part, the Centre “The inclusion of natural gas in
of India (OPPI) released a report titled rate to elevate patient care. FAQs (in Hindi and English) on the feedstock, besides its use as fuel. It is taxes these products almost entirely via GST may lead to short-term revenue
‘Viksit Bharat@2047 – Transforming ‘Value of Innovation’ was also launched used to produce urea, a common ferti- cesses the proceeds of which it doesn’t adjustments for states and the Centre,
India from Pharmacy of the World to Winning in Indian Healthcare to emphasize the critical role of R&D liser, and fed into capital-intensive have to share with the states. but these impacts can be mitigated. At
Pharma Powerhouse to the World,’ dis- The ‘Winning in Indian Healthcare’ and innovation in the biopharmaceu- crackers to produce olefi ns (ethylene/ the same time, the cost benefi ts may
cussing the Indian pharma industry’s report by BCG and OPPI explores the tical sector, touching on the costs and propylene), inputs for a wide range of Analysts say that ONGC, Oil India lead to increased volumes and any loss
journey towards global excellence. dynamic forces reshaping this criti- timelines associated with drug deve- industries. and Reliance would be among the of revenue may get compensated by
cal sector.It highlights the drivers for lopment and the importance of strength- major benefi ciaries of gas being included that. A carefully designed GST rate can
The report, released at the ‘OPPI growth (rising demand driven by an ening the Intellectual Property Rights At present, at the union level, cen- in the GST ambit along with city gas ensure minimal revenue disruption,”
Annual Summit 2024’ held in New aging population, a burgeoning middle (IPR) framework. tral excise duty is levied on natural distribution companies. According to a said Mr. Sandeep Sehgal, partner-tax,
Delhi on November 28, highlighted the class, and a chronic disease burden), gas; and at state level, value added report by Morgan Stanley, Indraprastha AKM Global.
need for collaboration with startups and alongside challenges such as regulatory FAQs on OTC drugs tax (VAT) is imposed. Gas producers,
academia, innovation, and quality to complexities, fragmented payer cover- During the Summit, ‘FAQs on Over cracker units and the user industries Govt. removes windfall tax on crude oil,
achieve a $450-bn market by 2047. The age, and market complexities. the Counter (OTC) Drugs in India’, are practically subject different rates ATF, petrol & diesel
key focus areas for the industry include was also launched, which highlights of taxes, complicating the taxation
strengthening active pharmaceutical “To thrive in this evolving land- the rapid rise of OTC drug adoption, process and denial of full benefi t of In a move that is expected to boost benefi t major oil players like Reliance
ingredients (APIs) and key starting scape, global pharma players must re- especially in the context of chronic input tax credit to many businesses. refi ning margins of these oil producers, Industries and ONGC by boosting their
materials (KSMs), R&D and innovation. think the portfolio strategy, invest in and lifestyle diseases like diabetes the government has scrapped the gross refi ning margins – a measure of
access initiatives, and embrace wider and cardiovascular conditions. “This Currently, the VAT on natural gas windfall tax on crude oil, Aviation profi tability in refi ning crude oil. Addi-
The report also highlighted the key ecosystem partnerships. This report shift toward proactive, self-managed ranges from 3% (Maharashtra) to as Turbine Fuel (ATF), petrol and diesel. tionally, the government has removed
growth imperatives required for India’s serves as a strategic guide for navi- healthcare is pivotal in improving high as 15% (in Gujarat). In Andhra This move marks the end of a levy the Road and Infrastructure Cess (RIC)
pharmaceutical sector to become a gating India’s vibrant but challenging public health outcomes while optimiz- Pradesh, the rate is 5%, Rajasthan 10%, introduced in July 2022 and aims to on petrol and diesel exports, further
global powerhouse. It envisions a healthcare ecosystem,” OPPI said in a ing healthcare resource utilization,” and Assam, 14.5%. The Union Gov- provide relief to oil producers and alleviating fi nancial pressure on the
resilient, inclusive healthcare ecosystem statement. OPPI said. ernment imposes a central excise duty refi ners. The decision is expected to oil sector.

152 Chemical Weekly December 10, 2024 Chemical Weekly December 10, 2024 153

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