Industry experts and oncologists hailed on Tuesday Union Finance Minister Nirmala Sitharaman’s proposal to fully exempt three cancer medicines from custom duties as she presented the Union Budget 2024 in the Lok Sabha.
Sitharaman said, “To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties.”
The cancer drugs
The finance minister proposed to cut custom duties on Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 10 per cent to nil. Trastuzumab Deruxtecan, Osimertinib and Durvalumab are key drugs in the fight against cancers.
How this budget proposal will help patients
Medical oncologist Dr Shyam Aggarwal of Delhi’s Sir Ganga Ram Hospital said, “All imported life-saving drugs are costly and customs duty exemption is a welcome step. Cancer drugs are very expensive and life saving. Patients require long term treatment.”
“Trastuzumab Deruxtecan is a breast cancer drug and can be used in all cancers with Her2 positive gene. Osimertinib is lung cancer drug for EGFR mutation,” Dr Aggarwal said.
Mutations in epidermal growth factor receptors (EGFR) are found to be associated with some lung cancers.
Durvalumab is also a drug for lung and biliary tract cancers, he said. “All these cancers are quite common in India and detected in late stages in our country.”
Dr Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare Limited, said, “We appreciate the government’s decision to exempt three cancer drugs from customs duty in the FY 2024-25 Budget. Cancer treatment often involves a significant financial burden for patients and their families.”
“By exempting these drugs from customs duty, the government has taken a concrete step towards alleviating this burden, making essential medications more affordable for those in need across the country. This decision also underscores the government’s commitment to addressing the growing cancer burden in India,” Dr Raghuvanshi said.
How cheaper these cancer drugs may become
The exact reduction in cost will depend on the current customs duty rates and other associated costs such as import taxes and logistics.
Exemption from basic customs duty could potentially reduce the price by 10-20 per cent, making these treatments more affordable for patients. However, precise figures would require detailed pricing and duty structure analysis.
How commonly these drugs are prescribed
How industry has reacted
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 said.
Union Budget has more to offer
Sitharamna also proposed 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.
“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.
Proposing changes in the basic customs duty on X-ray tubes and flat panel detectors under the phased manufacturing programme will significantly benefit domestic OEM manufacturers by reducing costs, encouraging local sourcing, and enhancing competitiveness, said Dr Raghuvanshi.
This alignment will foster local manufacturing, drive technological investment, and support the ‘Atmanirbhar Bharat’ initiative, ultimately contributing to economic growth and job creation, he said.
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Union Budget 2024: Doctors, industry hail move to exempt 3 cancer drugs from customs duty
