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Tax sops for pharma R&D may be extended
September, 05th 2006
In order to promote continuous research and development (R&D) activities in the pharmaceuticals sector, the Ministry of Chemicals and Fertilisers has sought approval from the Finance Ministry for extending the time limit of tax exemptions provided for such activities. "Time limit for tax exemption on research and development oriented companies has been under consideration by the Ministry of Chemicals and Fertilisers. A proposal has been sent to the Revenue Department for the extension and we are hopeful for a favourable move," the secretary in the Department of Chemicals and Petrochemicals, Ms Satwant Reddy told reporters here. She said the time limit on tax incentives provided to R&D oriented companies was supposed to expire on March 31, 2007 and the Ministry wants to extend it by another 10 years up to 2017, she said. Pharmaceutical companies that fall under the Government's gold standard criteria are entitled to get the tax benefit under the existing R&D policy. Speaking at a symposium on Dynamics of Innovation Leadership in Knowledge Based Industries, she said that the challenges for development of R& D activities are to improve physical infrastructure, HRD and systematic changes in the regulatory and IPR regime.
 
 
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