Union Budget 2024-25: FM announces exemption of 3 more cancer drugs from custom duties; check details here

Finance Minister Nirmala Sitharaman announced the exemption of 3 additional cancer drugs from custom duties in her Union Budget 2024 speech, presented during the Budget Session of the Parliament.

The exempted list of cancer drugs include Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple words, it is the tax that is levied on import and export of goods. “To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties,” said Sitharaman.

This move holds significance for many patients suffering from cancer with the rising rate of cancer patients in India. Trastuzumab Deruxtecan, Osimertinib, and Durvalumab are medications used to treat cancer. Trastuzumab Deruxtecan is used to treat various types of breast cancer and works by delivering chemotherapy directly to the cancer cells. Osimertinib treats a type of lung cancer with specific gene mutations and prevents the multiplication of cancer cells. Durvalumab is an immunotherapy drug used for lung and bladder cancers, thereby helping the immune system attack cancer cells.

The experts in the healthcare industry have urged the government to expand the list of life-saving drugs eligible for GST/import duty exemptions, including all oncology medications, to further improve the affordability of the patients. “Cancer drugs are very expensive and life-saving. Patients require long-term treatment. All steps to bring the cost down are more than welcome. All these cancers are quite common in India and detected in late stages in our country,” said Dr Shyam Aggarwal, Chairman, Medical Oncology, Sir Ganga Ram Hospital.

“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 Dr Mandeep Singh Malhotra, Director of Surgical Oncology at CK Birla Hospital.

“Exempting these drugs from basic customs duty will lower their import costs, making them more affordable for patients. This can improve access to advanced cancer treatments, reduce the financial burden on patients and their families, and potentially improve treatment outcomes by allowing more patients to benefit from these therapies,” he added.

Sitharaman also announced 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, to synchronise them with domestic capacity addition.

“The announcement enables continuity in investment in efforts to become a manufacturing hub of x-ray equipment globally. We recently raised the issue of increase in custom duty and removal of benefits for import of x-ray tube and flat panel detector under the Phased Manufacturing Programme (PMP). 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).