'Much-needed relief': Govt exempts customs duty on drugs for treatment of all rare diseases
Drugs generally attract basic customs duty of 10 per cent, while some categories of life-saving drugs and vaccines attract a concessional rate of 5 per cent or nil.
- Mar 30, 2023,
- Updated Mar 30, 2023 6:03 PM IST
The Centre on Thursday informed that it has given full exemption from basic customs duty on all drugs and foods imported for personal use for the treatment of all rare diseases. The exemptions will be applicable to drugs for rare diseases listed under the National Policy for Rare Diseases 2021, the finance ministry said in a statement.
In order to avail of this exemption, the individual importer has to produce a certificate from the central or state director of health services or district medical officer, or civil surgeon of the district. Drugs generally attract basic customs duty of 10 per cent, while some categories of life-saving drugs and vaccines attract a concessional rate of 5 per cent or nil.
Also read: Indian govt let go of Rs 7 lakh in GST to save a baby girl’s life; here's what happened
The ministry said that while exemptions had already been provided to specified drugs for the treatment of spinal muscular atrophy or Duchenne muscular dystrophy, the government had been receiving many representations seeking customs duty relief for drugs and medicines used in the treatment of other rare diseases.
Drugs or special foods required for the treatment of these diseases are expensive and need to be imported. It is estimated that for a child weighing 10 kg, the annual cost of treatment for some rare diseases may vary from Rs 10 lakh to more than Rs 1 crore per year with treatment being lifelong and drug dose and cost, increasing with age and weight.
"This exemption will result in substantial cost savings and provide much-needed relief to the patients," the statement said, adding that the government has also fully exempted Pembrolizumab (Keytruda) used in the treatment of various cancers from basic customs duty.
This comes just two days after Congress MP from Thiruvananthapuram Shashi Tharoor said that the government had sacrificed Rs 7 lakh in GST income to help a child who is battling cancer. He said a young couple approached him about their baby daughter, Niharika, who was suffering from a rare form of cancer for which the only treatment was an injection that cost Rs 65 lakh. They needed an additional Rs 7 lakh for GST which they could not afford.
When they approached Tharoor, he wrote to Finance Minister Nirmala Sitharaman on March 15 asking for her help to exempt them from the GST on humanitarian grounds. When there was no reply to his letter, he spoke to the Finance Minister, who immediately got in touch with the Chairman of the Board of Indirect Taxes and Customs.
"Within half an hour her PS, Sernya Bhutia, called to tell me she had spoken to the Chairman of the Board of Indirect Taxes and Customs. Within ten minutes Chairman Vivek Johari called me asking for more documentation. By 7 pm today the exemption was granted," he said. "The family will get their injection, the baby will live, and our exchequer will sacrifice 7 lakhs in GST income to bring life and joy to a small child," the Congress leader said.
The Centre on Thursday informed that it has given full exemption from basic customs duty on all drugs and foods imported for personal use for the treatment of all rare diseases. The exemptions will be applicable to drugs for rare diseases listed under the National Policy for Rare Diseases 2021, the finance ministry said in a statement.
In order to avail of this exemption, the individual importer has to produce a certificate from the central or state director of health services or district medical officer, or civil surgeon of the district. Drugs generally attract basic customs duty of 10 per cent, while some categories of life-saving drugs and vaccines attract a concessional rate of 5 per cent or nil.
Also read: Indian govt let go of Rs 7 lakh in GST to save a baby girl’s life; here's what happened
The ministry said that while exemptions had already been provided to specified drugs for the treatment of spinal muscular atrophy or Duchenne muscular dystrophy, the government had been receiving many representations seeking customs duty relief for drugs and medicines used in the treatment of other rare diseases.
Drugs or special foods required for the treatment of these diseases are expensive and need to be imported. It is estimated that for a child weighing 10 kg, the annual cost of treatment for some rare diseases may vary from Rs 10 lakh to more than Rs 1 crore per year with treatment being lifelong and drug dose and cost, increasing with age and weight.
"This exemption will result in substantial cost savings and provide much-needed relief to the patients," the statement said, adding that the government has also fully exempted Pembrolizumab (Keytruda) used in the treatment of various cancers from basic customs duty.
This comes just two days after Congress MP from Thiruvananthapuram Shashi Tharoor said that the government had sacrificed Rs 7 lakh in GST income to help a child who is battling cancer. He said a young couple approached him about their baby daughter, Niharika, who was suffering from a rare form of cancer for which the only treatment was an injection that cost Rs 65 lakh. They needed an additional Rs 7 lakh for GST which they could not afford.
When they approached Tharoor, he wrote to Finance Minister Nirmala Sitharaman on March 15 asking for her help to exempt them from the GST on humanitarian grounds. When there was no reply to his letter, he spoke to the Finance Minister, who immediately got in touch with the Chairman of the Board of Indirect Taxes and Customs.
"Within half an hour her PS, Sernya Bhutia, called to tell me she had spoken to the Chairman of the Board of Indirect Taxes and Customs. Within ten minutes Chairman Vivek Johari called me asking for more documentation. By 7 pm today the exemption was granted," he said. "The family will get their injection, the baby will live, and our exchequer will sacrifice 7 lakhs in GST income to bring life and joy to a small child," the Congress leader said.