The Finance Bill proposal to tax freebies given to doctors by pharmaceutical firms has led to a demand to make the Uniform Code of Pharmaceutical Marketing Practices (UCPMP) mandatory.K.V. Babu, functionary, Alliance of Doctors for Ethical Health Care, said that non-compliance of the code by pharma companies not only encouraged corrupt practices but also added up to the cost of drugs. Some companies spend crores of rupees through associations for sponsoring medical conferences. Huge amounts of money are used on travel, accommodation and other expenditures of the doctors who attend these lavishly arranged conferences, he said.Clause 7.2 of the UCPMP bars companies or their associations/representatives from extending any hospitality like hotel accommodation to healthcare practitioners and their family members under any pretext. “This means even extending benefits to the doctors through associations is unethical. But this is being flouted with impunity by the pharma companies to promote their business,” Dr. Babu said. Freebies to doctors is unethical and illegal according to the Medical Council of India regulations.According to the Finance Bill, pharma companies can no longer claim a business deduction for the gifts they provide to doctors that include foreign trips. The Explanatory Memorandum to the Bill says, “Thus, the legal position is clear that the claim of any expense incurred in providing various benefits in violation of the provisions of Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 shall be inadmissible under section sub-section (1) of section 37 of Act being an expense prohibited by the law. Delhi High Court decision which was relied upon by ITAT [Income Tax Appellate Tribunal] in some decisions was in a completely different context as discussed by ITAT Mumbai in their judgment in the case of Macleods Pharmaceuticals. These ITAT decisions allowing such expenditure are clearly not in line with the intention of the legislation.”Dr. Babu pointed out that the UCPMP was made voluntary for six months from January 1, 2015. It was to be reviewed after six months. Then then Union Minister Ananth Kumar had said in the Rajya Sabha in June 2016 that the voluntary code which was introduced in 2015 had not yielded desired results and the government would make it mandatory.