Why Tax Vaccines, Nirmala Sitharaman Explains After Mamata Banerjee Note

Nirmala Sitharaman said the GST on vaccines and drugs helped manufacturers claim Input Tax Credit to keep costs low.

Why Tax Vaccines, Nirmala Sitharaman Explains After Mamata Banerjee Note

Finance Minister Nirmala Sitharaman said import taxes on COVID-19 drugs were already waived.

New Delhi:

Finance Minister Nirmala Sitharaman on Sunday said that a 5 per cent tax on vaccines and 12 per cent on medicines and oxygen concentrators was necessary to keep costs low, after a new appeal by West Bengal Chief Minister Mamata Banerjee to waive these fees given India’s coronavirus crisis.

“If full exemption from GST (Goods and Services Tax) were given, the domestic producers of these items would be unable to offset taxes paid on their inputs and input services and would pass these on to the end consumers by increasing their price,” she explained in a string of 16 tweets.

Ms Sitharaman also said that COVID-19 drugs and related items have already been exempted from import taxes and 70 per cent of the Integrated Goods and Services Tax (IGST) goes down to the states.

The Finance Minister’s response comes after Mamata Banerjee wrote to Prime Minister Narendra Modi on Sunday, asking for tax waivers on the import of medicines and equipment needed to fight the COVID-19 pandemic.

It was Ms Banerjee’s third letter to PM Modi – since being sworn in for a third term on Wednesday – on the coronavirus crisis in the state and in the rest of the country. On Friday she wrote to highlight a potential oxygen supply crisis.


This is Chief Minister Banerjee’s third letter to PM Modi on the Covid crisis

West Bengal and other states in India have been hammered by a vicious second wave of the coronavirus – which coincided with campaigning and voting for the 2021 Assembly election that Ms Banerjee’s Trinamool won – that has overwhelmed hospitals and left people dying from oxygen and treatment shortage.

This morning the state reported over 19,000 new Covid cases in 24 hours to take the active caseload to more than 1.25 lakh. Over 12,000 people have died so far.

Ms Banerjee has ordered a partial lockdown of the state, including extensive restrictions on movement and requiring all visitors to show a Covid-negative report no older than 72 hours.

Save A Life. Help Fight The Coronavirus Outbreak In India

Leave a Comment

All the data shown above will be stored by www.rajpostexam.com on https://www.rajpostexam.com/. At any point of time, you can contact us and select the data you wish to anonymise or delete so it cannot be linked to your email address any longer. When your data is anonymised or deleted, you will receive an email confirmation. We also use cookies and/or similar technologies to analyse customer behaviour, administer the website, track users' movements, and to collect information about users. This is done in order to personalise and enhance your experience with us. Click here to read our Cookie Policy.