Budget 2024: Doctors welcome decision to exempt 3 cancer drugs from customs duty
The government proposes to cut custom duties on Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 10 per cent to nil
The government on Tuesday announced to fully exempt three cancer medicines from custom duties.
Union finance minister Nirmala Sitharaman made the announcement while presenting the Union Budget for 2024-25 in the Lok Sabha.
Welcoming the move, doctors said this decision will help patients battling the illness.
“All imported life-saving drugs are costly, and same goes for the cancer drugs; therefore, customs duty exemption is a welcome step. And patients mostly require long term treatment, so all steps to bring the cost down are more than welcome,” said Dr Shyam Aggarwal, chairman, medical oncology, Sir Ganga Ram Hospital.
The drugs that have received exemption— Trastuzumab Deruxtecan; Osimertinib; Durvalumab— are used as part of targeted cancer therapy in certain types of cancers.
Trastuzumab Deruxtecan is an antibody-drug conjugate used primarily to treat HER2-positive breast cancer that has spread to other parts of the body (metastatic). It is also being studied for use in other types of cancer, such as gastric cancer.
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Osimertinib is a targeted therapy used to treat non-small cell lung cancer (NSCLC) with specific mutations in the EGFR gene. It is particularly effective against cancers that have developed resistance to earlier generations of EGFR inhibitors.
Durvalumab is an immunotherapy drug that works by blocking the PD-L1 protein, helping the immune system to attack cancer cells. It is used to treat non-small cell lung cancer (NSCLC) and urothelial carcinoma (bladder cancer).
According to experts, the overall cost could come down by up to 20% due to the exemption.
“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%, making these treatments more affordable for patients. However, precise figures would require detailed pricing and duty structure analysis,” said Mandeep Singh Malhotra, director, surgical oncology at CK Birla Hospital.
Along with the cancer drugs, the finance minister also announced exemption of customs duty on components of X-ray tubes and digital detectors that the medical devices sector feels will encourage domestic manufacturing.
“Since there are no domestic manufacturers available for these two critical components, the relief from the government is appreciable,” said Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AiMeD).
Ashutosh Raghuvanshi, managing director and CEO, Fortis Healthcare Limited, added, “Proposing changes in the basic customs duty for 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. This alignment will foster local manufacturing, drive technological investment, and support the ‘Atmanirbhar Bharat’ initiative, ultimately contributing to economic growth and job creation.”
While the health ministry received ₹90,658.63 crore, a 12.59% increase from last year and Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) saw an allocation of ₹3,200 crore, highlighting the government’s push for strengthening health infrastructure in the country, experts said health could have received some more attention.
“Health was not one of the nine main priorities; and the budget could have better tackled the broader challenges in healthcare with a more complete plan. By not making health one of its top nine priorities, it misses the chance to fully address the sector’s broader challenges and opportunities,” said Aashish Chaudhry, managing director, Aakash HealthCare.