18pc GST on Alternative Medicines: Industry on Brink of Collapse, Millions of Livelihoods at Stake

By Dr. Ansab Ali
Lahore, Pakistan

LAHORE: The Pakistan Association of Alternative Medicine (PAAM) has urged the federal government to withdraw the 18 percent General Sales Tax (GST) imposed on alternative medicines, warning that the industry is facing an unprecedented crisis that threatens millions of livelihoods and the availability of affordable healthcare services.

Speaking on the issue, PAAM Central President Muhammad Kashif Aslam Malik expressed grave concern over the taxation of alternative medicines and called on the government to abolish the tax in the upcoming federal budget.

He said the alternative medicine sector is already under severe economic pressure due to rising costs of production. According to him, the 18 percent GST has significantly increased expenses related to raw materials, packaging, transportation, and logistics, making it increasingly difficult for manufacturers and distributors to sustain their operations.

“The excessive tax burden has crippled the industry and placed thousands of businesses at risk,” he said, adding that more than 500,000 people are directly employed in the alternative medicine sector, while over two million individuals depend on it indirectly for their livelihoods.

Muhammad Kashif Aslam Malik warned that if the current tax policy continues, many manufacturing units could be forced to shut down, resulting in large-scale unemployment and disruption in the supply of alternative medicines across the country.

He emphasized that medicines should be regarded as a national necessity rather than a source of revenue generation. He maintained that affordable access to healthcare products is essential for public welfare and should remain a priority in government policymaking.

The PAAM president further urged the government to initiate a meaningful consultative process with representatives of the alternative medicine industry during the final stages of budget formulation. He called for the exemption of alternative medicines and their raw materials from GST to ensure industrial stability, safeguard employment, and maintain the availability of affordable treatment options for the public.

Reaffirming the association’s commitment to supporting healthcare and economic development, he expressed hope that the government would take the industry’s concerns into consideration and introduce relief measures in the upcoming budget to protect the sector from further financial strain.