(Published in Part II, Section 3, Sub Section (ii) of the
Gazette of India Extraordinary)

Government of India
Ministry of Chemicals and Fertilizers
National Pharmaceuticals Pricing Authority

New Delhi, Dated : 3rd March, 2008

ORDER

S.O. 418(E) :- :- The Government of India in the Ministry of Finance (Department. of Revenue), Vide Notification No. 4/2008 -CE dated 1st March 2008 has reduced the excise duty on drugs and pharmaceuticals from 16% to 8%. The rate of abatement on Drugs and Pharmaceuticals has also been reduced from 42.5% to 35.5% vide Notification No. 14/2008-CE (NT) dated 1st March 2008 of the Government of India in the Ministry of Finance (Department of Revenue).

2.    Now therefore, in exercise of the powers conferred by Paragraphs 8, 9 and 11 of the Drugs Price Control Order,1995, read with S.O. No.637(E) dated the 4th September 1997 issued by the Government of India in the Ministry of Chemicals and Fertilizers, the National Pharmaceutical Pricing Authority hereby , by way of this general notification, revises the Equivalent Maximum Retail price (MRP) (inclusive of all taxes) of all Scheduled formulation packs downward, consequent to these changes. All manufacturers are required to reduce the Equivalent Maximum Retail Price (MRP) (inclusive of Excise duty & all taxes) by 4.58%.

[For example: For an existing equivalent MRP of Rs. 100, the revised Equivalent MRP (inclusive of all taxes) shall be Rs.95.42]

3.    The above reduction in the Equivalent MRP (inclusive of Excise duty and all taxes) shall take effect immediately in terms of above mentioned two notifications both dated the 1st March 2008 of the Ministry of Finance (Department of Revenue).

4.    The reduction in prices of such scheduled packs shall however not apply on those categories of scheduled formulation packs where no excise duty has been actually paid to the Government and therefore no excise duty shall be chargeable in the MRP of these scheduled formulation packs.

 PN/98/2008/NPPA

File No. F-8(5)/2008/DP/NPPA-Div.II

(RAJIV WADHAWAN)
Deputy Director
National Pharmaceuticals Pricing Authority