Ficci proposes 7-point package for biotech

Considering the promise that biotechnology holds, industry body Federation of Indian Chambers of Commerce and Industry

Considering the promise that biotechnology holds, industry body Federation of Indian Chambers of Commerce and Industry (Ficci) has suggested to the government to create conditions for growth as the sector can register a five-fold revenue growth to the tune of $5 billion and 1 million additional jobs by 2010.

Ficci has proposed a seven-point package for the purpose. It has also stressed on the need to give a fiscal boost to production and import of bio fuel and ethanol to encourage its large-scale use.

Under its proposal, Ficci has recommended to include expenditure incurred on clinical trials as an expense for weighted tax deduction at 150 per cent under section 35 (2AB) of Income Tax Act, 1961. Secondly government may consider providing relief to recognised biotech, pharmaceutical and clinical research companies by giving a blanket permission for import of laboratory consumables worth Rs 1 crore per annum.

The third point raised by Ficci is that customs officials may be updated regularly with the new policies on issues related to handling of biological materials. On the lines of excise duty exemption, the chamber has pointed out that customs duty should also be nil for equipments.