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Tuesday, 19 November 2019

Pharma producers seek further exemption from VAT but ministry rejects

Local pharma manufacturers are angling for a wider exemption from value-added tax (VAT) on their products, according to Ahram Gate. The manufacturers were granted VAT exemption in 2016 on active ingredients used in their products, but they now argue that the exemption does not cover other production input, such as paper and bottles. The Finance Ministry seems to be standing its ground on this one, saying that the pharma industry’s raw materials and active ingredients are indeed VAT-exempt, signaling that it will not allow for further concessions.

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