Budget 2013: OPPI looking for rationalisation of customs duty to 5% for formulations

NEW DELHI: The Organisation of Pharmaceutical Producers of India( OPPI) is looking for rationalisation of basic customs duty( BCD) to 5% for formulations in the Budget 2013.

At present, BCD on formulations is 10% (other than specified drugs, life saving drugs, vaccines and bulk drugs for which the BCD rate is 5%).

The suggestion by OPPI is in line with the Chelliah Committee's long-term fiscal policy recommendation.

Raja Chelliah is best known for his work on financials sector reforms as he was appointed chairman of Tax Reforms Committee in 1991 by Manmohan Singh, who was then the country's finance minister. This ultimately paved way for liberalisation and opening up of the economy for trade. Mr Chelliah also served as chairman of the National Institute of Public Finance and Policy (NIPFP) for six years.

Chelliah had also headed an expert committee appointed by the Jayalalithaa government on fiscal reforms.