For the first time in the country, a decision has been taken to establish a vaccine fund under the policy for local production of medicines.
According to the policy document on local production of medicines, the country’s vaccine import bill is likely to exceed 1.2 billion dollars in the coming years, while local production of vaccines could result in annual savings of approximately 500 million dollars. Under the local medicines production policy, a vaccine fund will be established for the first time in the country.
The document states that under the policy, a short term action plan for one to two years has been included. The vaccine fund will be established under the local medicines production policy, the fund will be state owned and will be managed professionally under commercial principles.
Similarly, investment from the same fund will be made to resolve issues related to investment in the sector. The fund will be used from vaccine production to clinical trials. The policy also proposes tax exemptions on machinery for the production of EPI vaccines.
The document further revealed that under this policy, a plan will be made to enhance the capacity of DRAP and the National Control Laboratory for Biologicals will be upgraded. The fund will serve as an important financial source to ensure the availability of adequate capital in the market. The fund will help shift the system from vaccine imports to a local manufacturing system with export potential.
In addition, proposals include providing a super tax exemption of up to 10 years to vaccine manufacturing companies, along with relief in corporate tax and income tax. Vaccine manufacturers will also be allowed to retain 35 percent of their export earnings in dollars.
