Proposed changes to R&D incentives may not be bitter pill for drug industry
ALTHOUGH proposed refinements to the research and development (R&D) incentive, contained in the draft of the Taxation Laws Amendment Bill published in July, have been met with great concern, there is some positive news for the pharmaceutical industry.Changes proposed in the draft bill provides for an inclusion of certain R&D in respect of generic medicine, and the qualification of some clinical medical trials expenses incurred for R&D, although the drug development occurs abroad.Catalyst Research Solutions MD Dov Paluch said on Tuesday generic medicine and clinical trials played an important part in South Africa with a lot of research required to manufacture the replica of the original drug."Until now the legislature and SARS (South African Revenue Service) have been opposed to include the pharmaceutical industry in the incentive, arguing that they were merely copying existing products where the results have already been established."He says although guidelines and regulations have ...
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