Budget 2024-25 HEALTH: Cancer-hit to get duty-free drug balm
Aksheev Thakur
New Delhi, July 23
Finance Minister Nirmala Sitharaman announced the exemption of customs duty on three cancer medications, aimed at easing the financial burden on patients.
The Finance Minister has additionally detailed changes in the Basic Customs Duty (BCD) on X-ray tubes and flat panel detectors used in X-ray machines to boost domestic production capacity.
“To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duty. I also propose changes in the basic customs duty (BCD) 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,” the minister said.
The list of cancer drugs exempted from customs duty now includes Trastuzumab Deruxtecan, Osimertinib and Durvalumab. These drugs earlier attracted an import tax of 10 per cent.
Trastuzumab Deruxtecan is used to treat HER2-positive breast cancer. Osimertinib is used to treat lung cancer by stopping or slowing the spread of cancer cells and may help shrink tumours. Durvalumab is an immunotherapy drug that helps the immune system attack cancer cells. It is used to treat non-small cell lung cancer (NSCLC) and urothelial carcinoma (bladder cancer).
Trastuzumab Deruxtecan is sold for around Rs 3 lakh per vial. While Osimeritinib is sold at Rs 1.51 lakh for 10 tablets, Durvalumabs is sold at Rs 45,500 per vial for injection.
DS Negi, CEO, Rajiv Gandhi Cancer Institute and Research Centre (RGCIRC), said, “The high cost of cancer medications has been a major barrier for many patients. This exemption will undoubtedly provide much-needed financial relief to those battling the disease. The proposed reduction in the basic custom duty (BCD) on X-ray tubes and flat panel detectors for use in medical X-ray machines is commendable. By aligning these changes with domestic capacity addition, the government is not only supporting the growth of local manufacturing but also ensuring that advanced medical technology is available to improve diagnostic accuracy and treatment outcomes for cancer patients.”
Pavan Choudary, Chairman, Medical Technology Association of India (MTaI), said, “Customs duty reduction on finished goods is a pending demand. Even though that has not happened, the reduction of customs duty on X-ray machine components is perhaps reflective of the realisation that only those products which we can manufacture in the short to mid-term can be protected without triggering adverse unintended consequences. 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. This would further patient affordability and foster competition and quality.”
Sitharaman has proposed an estimate of Rs 90,958.63 crore for 2024-25 as health budget. Of the total estimated budget, Rs 87,656.90 crore has been proposed for the Department of Health and Family Welfare whereas Rs 3,301.73 crore has been proposed for the Department of Health Research.
About the medicines
- Trastuzumab Deruxtecan is used to treat HER2-positive breast cancer
- Osimertinib is used to treat lung cancer by stopping or slowing the spread of cancer cells and may help shrink tumours
- Durvalumab is an immunotherapy drug that helps the immune system attack cancer cells. It is used to treat non-small cell lung cancer (NSCLC) and urothelial carcinoma (bladder cancer)
- Trastuzumab Deruxtecan is sold for around Rs 3 lakh per vial. While Osimeritinib is sold at Rs 1.51 lakh for 10 tablets, Durvalumabs is sold at Rs 45,500 per vial for injection
- These drugs earlier attracted an import tax of 10 per cent
