The Central government policy is goaled to stand by corporates at all time, even if that means disdain for its vast majority. Covid cases in the country have exceeded the 2-lakh mark and the government has just rolled back GST concession allowed earlier for Covid drugs . The 5 percent GST prevalent up to 31st Dec now stands raised to 12 percent, with effect from January 2022.
Most drugs used to treat severe Covid conditions are now priced high . Cost of Monoclonal Antibody injections are now up by Rs 8000 per shot. Tocilizumab injection, used to treat severe pneumonia in Covid patients used to cost Rs 12,032. Now, after GST hike it is Rs 42,572 .The Covid pneumonia drug was full exempte rom GST for the right reasons. Remdesivir, used to fight coronavirus now comes at Rs 3000. PCR testing and Oximeter have all undergone similar spike in prices.
The 44th GST Council meeting, convened in June of 2021, slashed GST on Covid drugs from 12 percent to just 5 percent. Notification to the effect was published on 14 June. The concessional rate would hold good till 30 September. Later, following strong opposition from states like Kerala, in the GST Council held in September, the concessional rate allowed to remain up to 31st of December. However, in the subsequent 46th Council meeting, the Centre firmly refused an extension.
The government policy is like, only ordinary folks and consumers are obliged to pay taxes while rebates are privilege of the wealthy. This attitude must change. The govt has withdrawn the GST discount in order to benefit pharma giants and private hospital majors. These beneficiaries are now mopping up huge profits under the cover of raised GST. The Anti-profit authority must intervene in the crisis.
The outbreak of third wave and massive surges took place after the last GST Council meeting. The Council should therefore make urgent interventions to restore the concessional rates. There must be no delay. It is possible to approve the reinstatement in the meeting slated next. With Union Budget due to be announced tomorrow, the government’s Covid mitigation moves will be viewed with weightage.
Kerala is tackling the third wave with science at core and treatment facilities. Although not positioned to shower money, this government has proved its commitment to help weak sections of the population. Daily case tally in the state is hovering around 50,000 for days together now. ICU, ventilator, oxygen and pediatric facilities in hospitals have been upscaled. There is huge stress on the state finances and at a critical time like this, the Centre refuses to shell out a single paisa towards continued liabilities. In fact, it is all set to reap harvests from the GST spike it has just effected. Such utter disregard for the Covid afflicted society is cruel and violative.
A responsible govt is bound to ensure wellbeing of its people rather than nurturing an disease-struck population. Fostering a healthy society is the prime duty of any democratic government. The Central government cannot shirk this responsibility over and over again forever.
