Islamabad: (RightNow). The government has doubled the turnover tax rate for pharmaceutical distributors to 0.5% starting July 1, 2026. This move has increased business costs and put pressure on profit margins.

The new tax rate for the fiscal year 2026-27 is set at 0.5%, up from last year’s 0.25%. Initially, the government proposed a 1.25% rate, but it was reduced after negotiations.

Former Chairman of the Pakistan Pharmaceutical Manufacturers Association, Tauqeer-ul-Haq, stated that a 1.25% tax would have adversely affected distributors’ financial conditions.

It is important to note that this fiscal year’s budget also provided some relief for the pharmaceutical industry, such as the removal of duties on raw materials.

Remember that due to export issues, the pharmaceutical industry needs policies for access to international markets.