The government on Tuesday proposed to fully exempt three cancer medicines from customs duties.
The government proposes to cut customs duties on Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 10 per cent to nil.
"To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties," Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2024-25 in the Lok Sabha.
She also proposed changes in the basic customs duty on x-ray tubes and flat panel detectors for use in medical x-ray machines under the phased manufacturing programme, so as to synchronise them with domestic capacity addition.
"My proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export-competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount," Sitharaman said.
Organisation of Pharmaceutical Producers of India director general Anil Matai said the move will provide much-needed relief to cancer patients by reducing the financial burden of these life-saving drugs.
"While we appreciate the positive strides taken in the Union Budget 2024, we were also hoping that the government could announce incentives for pharma companies to develop medications for rare diseases affecting small populations," he added.
Matai further said: "We were also hoping for the stricter and unambiguous enforcement of IP regulations required for Pharma MNCs to introduce newer innovative therapies for Indian patients."
Medical Technology Association of India chairman Pavan Choudary noted that customs duty reduction on finished goods is a pending demand.
"Even though that has not happened, the reduction of custom duty on X-ray machine components is perhaps reflective of the realization that only those products which we can manufacture in the short to mid-term can be protected without triggering adverse unintended consequences," he added.
He further said: "We do hope that tariff barriers on finished MedTech products which are not import substitutable in the short to mid-term will eventually come down."
FICCI Health Services committee chairman and Founder & Chairman Mahajan Imaging & Labs Harsh Mahajan said the exemption of customs duty on three life saving medicines for cancer treatment is a welcome step.
Fortis Hospital principle director and chief of Neurology Praveen Gupta said the exemption of custom duties on three cancer medicines and reduction of duties on certain medical technologies such as x-ray tubes and flat panel detectors is a significant move to strengthen domestic capabilities in the healthcare sector.
"Though these measures are far less than expected, they will make advanced cancer treatments more affordable and accessible, addressing a critical need given the high cost of such treatments," he added.
