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The list of 36 drugs, which are exempt from basic customs duty, includes many expensive and imported medicines that can otherwise become a financial burden for a patient’s family
Besides duty relaxation on cancer drugs, the Centre has also announced the establishment of daycare cancer centres across India. (Image for representation: AFP)
Gene therapy, chemotherapy, and drugs to treat rare diseases, including Pompe, Gaucher and spinal muscular atrophy – 36 such lifesaving drugs will now be exempt from the basic customs duty, providing major relief to cancer and chronic disease patients.
Presenting the Union Budget 2025, finance minister Nirmala Sitharaman on Saturday announced the addition of 36 lifesaving drugs that are now fully exempt from basic customs duty.
“To provide relief to patients, particularly those suffering from cancer, rare diseases, and other severe chronic diseases, I propose to add 36 lifesaving drugs and medicines to the list of medicines fully exempted from Basic Customs Duty (BCD),” Sitharaman said in her budget speech in Parliament.
“I also propose to add 6 lifesaving medicines to the list attracting concessional customs duty of 5 per cent. Full exemption and concessional duty will also respectively apply on the bulk drugs for the manufacture of the above,” she said.
The list includes several oncology drugs apart from several other lifesaving drugs, such as ‘onasemnogene abeparvovec’, which is a gene therapy drug used to treat spinal muscular atrophy (SMA) in children; ‘alglucosidase alfa’, which is an enzyme replacement therapy drug used to treat Pompe disease; and ‘mepolizumab’, which is a humanised monoclonal antibody used for the treatment of severe asthma attacks.
The central government has also added a list of specified drugs and medicines provided under ‘patient assistance programmes’ run by pharmaceutical companies, which are fully exempt from basic customs duty “provided the medicines are supplied free of cost to patients”.
“I propose to add 37 more medicines along with 13 new patient assistance programmes,” the finance minister said.
From MSD’s immunotherapy drug to fight multiple cancers to AstraZeneca’s unique drug to treat tumours in young children not fit to undergo surgery – the list of patient assistance programmes includes drugs from top oncology drugmakers, including Roche, Bristol-Myers Squibb, GSK Pharmaceuticals, Takeda Biopharmaceuticals, Merck Specialties, Johnson & Johnson, AstraZeneca, Novartis Healthcare, Pfizer and MSD Pharmaceuticals.
The healthcare industry had urged the finance ministry to make announcements on cancer care and treatment. News18 reported in January about the demands of healthcare experts seeking tax concessions on cancer medicines.
Data by Previu Health – a startup working in the screening and prevention of cancer – shows that one in nine Indians are at risk of cancer and 75 per cent to 80 per cent of the cases are detected at later stages.
WHAT KIND OF DRUGS DOES THE LIST INCLUDE?
The list of 36 drugs, which are exempt from basic customs duty, includes many expensive and imported medicines that can become a financial burden for a patient’s family.
Some examples include cysteamine bitartrate, which treats nephropathic cystinosis in children aged below six. Nephropathic cystinosis is a rare, inherited disorder that causes the building of cystine in the body affecting kidneys, eyes, and other organs.
The list further includes ‘alectinib’ and ‘tepotinib’, which are targeted drugs used to treat non-small cell lung cancer. It includes ‘velmanase alfa’, which is an enzyme replacement therapy used for the treatment of non-central nervous system symptoms.
It also includes ‘alirocumab’, which is used to prevent heart attack and works on lowering a special type of cholesterol that cannot be controlled by regular medicines and diet.
‘Imiglucerase’ – also a part of the list – is a medication used to treat the rare Gaucher disease in which people experience excessive bruising and bleeding apart from having a protruding belly caused by swelling.
200 CANCER CENTRES TO COME UP
Besides duty relaxation on cancer drugs, the Centre has also announced the establishment of daycare cancer centres across India.
“Our government will facilitate setting up daycare cancer centres in all district hospitals in the next three years. 200 centres will be established in 2025-26,” Sitharaman said.
Experts have welcomed the move. “This is a huge step towards creating a positive impact. The outcomes will certainly improve, if these centres would be linked digitally and treatment will be delivered based on guidelines,” said Dr Nilesh Rohtagi, senior director of medical oncology at Fortis Memorial, Gurgaon.
Similarly, Dr Sameer Bhati, director, Star Imaging and Path Lab believes that the Union Budget represents a “significant milestone” in the direction of accessible and affordable healthcare.
“The establishment of daycare cancer treatment centres in each district hospital, with 200 for FY 2025-26, will facilitate early diagnosis and treatment,” Dr Bhati said. “36 lifesaving drugs included in the exemption list for full customs duty and concessional rate of duty on bulk drugs will guarantee price affordability for the treatment of cancer and rare and chronic diseases.”
Cancer drugs are imported, but come at an exorbitant cost mostly ranging from several lakhs to crores per year. Due to unaffordability, patients and their families sometimes opt for crowdfunding for treatment. The move will benefit lakhs of patients as per experts.
According to Dr Satya Prakash, director of paediatric haematology-oncology and bone marrow transplant, Medanta Hospital: “It’s a fantastic news for patients. All drugs on this are lifesaving and very expensive. Hence, cost reduction is a big boon and shall make it accessible to more patients.”
Dr Gaurav Dixit, unit head of haemato-oncology at Gurugram-based Artemis Hospital, told News18: “There are many new drugs in oncology, which have improved patient survival and have fewer side effects. Many of these are patented by various MNCs and are very expensive. Nonetheless, we have to use it in specific patient groups. The cost may go up to lakhs for a month’s therapy for these drugs. This reduction in customs duty is a welcome step, and we hope it brings down cost by 10-20%. Especially for patients paying out of their own pocket, it will be a big relief.”
