PXL/HO/Cir-056/2025-26                                                                                                     Date: 19.08.2025

Hyderabad

Subject: Request for Inputs on Inverted Duty Structure Impact and Recommendations for Tax Reforms

It has come to our attention that the prevailing customs duty structure is creating economic challenges for domestic manufacturing. Specifically, the import duties on raw materials and inputs, such as Active Pharmaceutical Ingredients (APIs) and medical device components, are significantly higher than those on finished formulations and finished devices respectively. This disparity is impacting the cost-effectiveness of domestic production.

Pharmaceuticals:

• APIs (e.g., Ibuprofen, Paracetamol) attract a 10% import duty, whereas finished formulations (e.g., tablets, syrups) attract only a 5% duty. This makes importing finished formulations more cost-effective than domestic production using imported APIs.

We request our member companies to provide details inputs on the link provided below on or before 1pm on 20^th Aug 2025.

LINK

Thank you for your attention to this matter

With Regards,

Raja Bhanu K

Director General