Cancer patients are likely to get some relief on drug expenses in the coming days. The government has ordered pharmaceutical companies to reduce the MRP of three anti-cancer drugs: trastuzumab, osimertinib and durvalumab. The objective behind this government direction is that the benefits of customs duty exemption and GST reduction can be passed on to the consumers. In line with the government’s commitment to ensure availability of medicines at affordable prices, the National Pharmaceutical Pricing Authority (NPPA) has issued an office memorandum, PTI reported.
Customs duties on all three medicines have been reduced to zero
According to the news, the Ministry of Chemicals and Fertilizers said in a statement that this is in compliance with the announcement made in the Union Budget for the year 2024-25, in which these three anti-cancer drugs have been exempted from customs duties. The Revenue Department of the Ministry of Finance issued a notification on July 23 this year reducing customs duty on the three medicines to zero. The ministry said that, consequently, the selling price of these drugs in the market should be reduced and the benefit of reduced taxes and duties should be passed on to consumers.
It will be necessary to issue a price list or supplementary price list.
The Ministry of Chemicals and Fertilizers said manufacturers will have to issue price lists or supplementary price lists to distributors, state drug controllers and the government, indicating the changes, and inform the National Drug Pricing Authority about price changes. Finance Minister Nirmala Sitharaman, presenting the Union Budget for 2024-25 in the Lok Sabha, proposed to reduce customs duty on trastuzumab, osimertinib and durvalumab from 10 per cent to zero.
Exports of medicines and medical technology will continue to boom
Despite the slowdown in the global economy, India’s medical and pharmaceutical technology exports are expected to continue growing in the current financial year. With increased government support for drug development in India, production of 16 ‘blockbuster molecules’ is being planned in India for multiple therapeutic areas including cancer, diabetes, HIV and tuberculosis.
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