Finance Minister Nirmala Sitharaman on Tuesday announced the exemption of three additional cancer drugs from customs duties in the Union Budget 2024-25, presented during the Budget Session of Parliament. The list of cancer drugs exempted from customs duty now includes Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. Customs duty is a tax imposed on goods transported across international borders to raise revenue, protect domestic industries, and regulate trade. “To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties,” said Sitharaman. Significance of the Exempted Drugs With the rising burden of cancer in India, the move holds significance for many patients suffering from the disease. Trastuzumab Deruxtecan, Osimertinib, and Durvalumab are medications used to treat cancer. Trastuzumab Deruxtecan is used for certain types of breast cancer and works by delivering chemotherapy directly to cancer cells. Osimertinib is used for a type of lung cancer with specific gene mutations and helps stop the growth of cancer cells. Durvalumab is an immunotherapy drug used for lung and bladder cancers, helping the immune system attack cancer cells. India faces a significant challenge with lung and breast cancer. According to the World Health Organization (WHO), there were an estimated 81,748 new lung cancer cases in India in 2022, making it the leading cancer among men. Per the government, breast cancer is the most prevalent among women, with 1.41 million new diagnoses reported in 2022. This accounts for approximately 14% of all female cancers in the country. Over half of these women are diagnosed at later stages (stage 3 and 4), which can negatively affect their survival rates, according to doctors. Impact on Affordability for Patients Health experts have long urged the government to expand the list of life-saving drugs eligible for GST/import duty exemptions, including all oncology medications, to further improve patient affordability. “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 National Cancer Registry Programme (NCRP) highlights the overall cancer burden in India, indicating that approximately 1 in 9 people will develop cancer in their lifetime. Health experts have said that the move is expected to make the drugs more affordable for cancer patients. “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. Changes in BCD on some medical devices
The finance minister 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 exemption of customs duties on three cancer medicines and reduction of duties on certain medical technologies such as x-ray tubes and flat panel detectors is a significant move to strengthen domestic capabilities in the healthcare sector,” said Dr Praveen Gupta, Principal Director and Chief of Neurology, Fortis Hospital. “Although these measures are less than expected, they will make advanced cancer treatments more affordable and accessible, addressing a critical need given the high cost of such treatments,” he said.
The government's National Medical Devices Policy-2023 also aims to reduce import dependence by 70 per cent and make India a global manufacturing hub of medical devices. “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).