Govt exempts service tax on drug testing
India on Wednesday proposed a major sop to promote clinical trial of new drugs in the country by exempting the research activity from service tax.
By PTI |
NEW DELHI: India on Wednesday proposed a major sop to promote clinical trial of new drugs in the country by exempting the research activity from service tax.
Presenting the Union Budget 2007-08 in Parliament on Wednesday, Finance Minister P Chidambaram said the exemption was aimed at making India a "preferred destination" for drug testing. India is fast emerging as a destination for clinical trials of new drugs with the research outsourced to the country estimated at $100 million.
Around 20 organisations in India specialise in clinical trials. The cost of conducting clinical trials in India ranges between 20 and 60 per cent of the cost in Western countries and the number of patients in Indian trial sites constitutes 20 per cent of patients in global clinical trials. A clinical trial of vaccine against HIV/AIDS is in its second phase in the country.
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