NEW DELHI: The Budget proposal to waive customs levy on three specific cancer therapies has sparked claims of being “an eye-wash” and “selective”, as it covers only drugs from one MNC AstraZeneca. The exemption does not extend to the entire category or class of cancer drugs, and provides a “marginal” benefit averaging Rs 18,000 each per vial/strip, industry experts told TOI.
Reacting to the move, AstraZeneca scrip jumped over 13% over the last two days (from the July 22 close) to Rs 7,076 on the BSE.
The proposal has renewed demands from industry and patient groups, and domestic pharma biggies like Biocon, for removal of GST on cancer and rare disease drugs, arguing that broader tax relief would more effectively support patients and the healthcare system. Further, the customs duty waiver should be extended to all imported cancer and rare disease drugs, and not be restricted to only one category, an executive with a MNC firm said.
The Budget exempted three cancer drugs – Trastuzumab Deruxtecan, Osimertinib and Durvalumab – from a customs levy of 10%. Trastuzumab Deruxtecan is a breast cancer drug, Osimertinib lung cancer and Durvalumab is used as lung and biliary tract cancer therapy.
Kiran Mazumdar Shaw, chairperson, Biocon and Biocon Biologics said: “The removal of customs duty on three cancer drugs will provide relief to cancer patients. However, govt needs to consider GST exemption for all cancer drugs to make cancer care more affordable for patients.” At present, patients face a double whammy with the customs duty levy of 10%, and a GST of 12%, significantly hiking treatment costs of imported drugs.
“We will renew the request for a waiver of customs duty on all cancer and rare disease drugs and a reduction of GST on drugs,” a Ficci representative said.
Reacting to the move, AstraZeneca scrip jumped over 13% over the last two days (from the July 22 close) to Rs 7,076 on the BSE.
The proposal has renewed demands from industry and patient groups, and domestic pharma biggies like Biocon, for removal of GST on cancer and rare disease drugs, arguing that broader tax relief would more effectively support patients and the healthcare system. Further, the customs duty waiver should be extended to all imported cancer and rare disease drugs, and not be restricted to only one category, an executive with a MNC firm said.
The Budget exempted three cancer drugs – Trastuzumab Deruxtecan, Osimertinib and Durvalumab – from a customs levy of 10%. Trastuzumab Deruxtecan is a breast cancer drug, Osimertinib lung cancer and Durvalumab is used as lung and biliary tract cancer therapy.
Kiran Mazumdar Shaw, chairperson, Biocon and Biocon Biologics said: “The removal of customs duty on three cancer drugs will provide relief to cancer patients. However, govt needs to consider GST exemption for all cancer drugs to make cancer care more affordable for patients.” At present, patients face a double whammy with the customs duty levy of 10%, and a GST of 12%, significantly hiking treatment costs of imported drugs.
“We will renew the request for a waiver of customs duty on all cancer and rare disease drugs and a reduction of GST on drugs,” a Ficci representative said.