Centre may choose Penalty Settlement for Pharma Companies Cases Under Vivad Se Vishwas Scheme 2

The Union government is expected to begin settling complaints launched by the National Pharmaceutical Pricing Authority (NPPA) for pharmaceutical businesses under the Vivad se Vishwas scheme 2. This is the government’s attempt at tax resolution and litigation reduction.

According to insiders, the government may launch a system to resolve penalty claims against pharmaceutical businesses. The initiative, which was first introduced by the Finance Minister during the Budget, aims to reduce tax litigation.

It is noteworthy that the National Pharmaceutical Pricing Authority (NPPA) had initiated penalty cases against some pharmaceutical companies for prescribing higher medicine prices, despite these being under the essential category and there being a price cap thus, these cases were hanging in for quite a long time.

The penalty settlement under the Vivad Se Vishwas Scheme 2 will allow these enterprises to fix the matter and move on.

The government could collect between Rs.5000 crore and Rs.6000 crore from the settlement of penalty cases against pharmaceutical businesses.

This is a significant step forward for the industry. The change is likely to give much-needed assistance to businesses while also assisting the government in reducing tax litigation.