Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2024-25 in Parliament on Tuesday, announced that three cancer treatment medicines will be exempted from basic customs duty. This measure aims to make life-saving drugs more affordable for cancer patients who require long-term treatment.
The Finance Minister also outlined modifications to the Basic Customs Duty (BCD) on X-ray tubes and flat panel detectors used in medical X-ray machines as part of the Phased Manufacturing Program, intended to “enhance domestic production capacity.”
Dr. Shyam Aggarwal, Chairman of Medical Oncology at Sir Ganga Ram Hospital, reacting to the announcement said, “All imported life-saving drugs are costly, and customs duty exemption is a welcome step. Patients require long-term treatment. All steps to bring the cost down are more than welcome.”
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Dr. Aggarwal elaborated on the specific drugs affected by the exemption:
Deruxtecan: A breast cancer drug that can be used in all cancers with the Her2 positive gene.
Osimertinib: A lung cancer drug for EGFR mutation.
Durvalumab: A drug for lung and biliary tract cancers.
“All these cancers are quite common in India and are often detected at late stages in our country,” he added.
Dr. Harsh Mahajan, Founder and Chairman of Mahajan Imaging & Labs and Chairman of FICCI Health Services Committee, emphasized the broader implications of these changes. He said, “The exemption of three life-saving medicines for cancer treatment is a welcome step. We will need to study the fine print to know what these drugs are. Exemption of customs duty on components of X-ray tubes and digital detectors will spur indigenous manufacturing of digital X-ray machines in India. Allocation of funds for innovation and skilling will also help those working in the healthcare sector.”
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Dr. Ashutosh Raghuvanshi, MD & CEO of Fortis Healthcare Limited, also appreciated the government’s decision. Dr Raghuvanshi 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 further noted, “Proposing changes in the BCD 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.”
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However, Dr. Raghuvanshi pointed out some unmet demands: “Some longstanding healthcare sector demands remain unaddressed in the current budget. These include increasing the GDP spend on healthcare to 2.5%, prioritizing healthcare as a national issue, promoting medical value travel in India, addressing indirect taxation and unused MAT credits, and rationalizing GST with a uniform rate and full input tax credit eligibility. We urge these issues be considered in future budgets to build a healthier, stronger India.”
Dr. Vaibhav Kapoor, Co-founder of Pristyn Care, shared his reaction to the Union Budget: “The Union Budget for 2024-25 is a positive growth step, and we welcome it wholeheartedly. We are glad to see efforts to back education and skills development, such as by revising the Model Skill Loan Scheme, enabling 25,000 students per annum and giving e-vouchers for loans up to Rs 10 lakh to one lakh students yearly.”
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Dr Kapoor added, “The new package announced today includes five schemes with a budget of Rs 2 lakh crore aimed at generating employment opportunities and enhancing the skill levels of 4.1 crore youth over the next five years. Additionally, this year’s allotment of Rs 1.48 lakh crore towards education, employment, and skilling demonstrates a strong commitment in these areas. These measures will help young people receive better education, improve the education system through significant investment, and create many job opportunities. This comprehensive approach will make our future brighter, healthier, and more prosperous for everybody.”