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What are the implications of the Tamil Nadu Government's Budget proposal to abolish the 8 per cent sales tax slab and, consequently, push the allopathic drugs to the 10 per cent slab?

The trade has already been complaining about the difficulties posed by the non-uniform levy of sales tax on allopathic drugs. It has been trying to convince the powers that be that a tax on drugs is actually a tax on people's illness.

Taking into account the additional levy, the difference in MRP and the selling price at the retail point could be about 8 per cent and the traders are bound to have a tough time explaining this to the consumers. The public should appeal to the State government to exempt drugs (of all systems) from sales tax, or, reduce it to 4-5 per cent.

K. R. Chandrasekar

Ramanathapuram

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