A bunch of regulatory and administrative issues is scuttling the growth of pharma exports, according to the federation of pharmaceutical and allied products merchant exporters (FPME).
The association has flagged the concerns to the finance ministry, the Central Board of Indirect Taxes and Customs and other government bodies on the challenges being faced by the exporters.
According to the exporters, section 43B(h) of the Income Tax Act, which came into effect in April 2024, has severely impacted the cash cycle of exporters. This section mandates the companies to pay their suppliers registered as micro, small and medium enterprises (MSMEs) within 45 days to qualify for tax deductions.
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