State Of The Economy 2015

Shrouded in mist

As their tax holiday draws to a close, many pharmaceutical units are unsure about their future in the hilly Baddi

Photographs by Soumik Kar

Harish Goyal is clearly anxious about his future. The owner of Samson Laboratories, now in his early 40s, had set up his pharmaceutical unit in Baddi, Himachal Pradesh, in 2005, and manufactures for many big names in the pharma world. “Do ministries in Delhi read your stories?” he asks with hope in his eyes. Soon, he opens up a letter on his computer, addressed to the Union finance minister and marked to the finance secretary. The letter requests the ministry to impose excise duty on transfer price and not on maximum retail price (MRP) — as is done in the case of pharma. Goyal explains, “MNCs and large companies can still bear the excise burden, as they sell medicines at MRP, but ours are seldom sold at MRP.”