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This is an archive article published on March 31, 2023
Govt scraps customs duty on costly drugs for rare diseases
In order to avail of this exemption, an individual importer needs to produce a certificate from a central or state director of health services or a district medical officer or civil surgeon, a Finance Ministry release said.
A Finance Ministry statement said: “While exemptions have already been provided to specified drugs for treatment of spinal muscular atrophy or duchenne muscular dystrophy, the government has been receiving representations seeking customs duty relief for drugs and medicines used in treatment of other rare diseases.”
The Union government has said it will provide full exemption from basic customs duty for drugs and ‘food for special medicinal purposes’ that are imported for personal use to treat rare diseases. Among the medicines that will be exempt is Pembrolizumab (Keytruda), used in treating various types of cancer.
The duty change will come into effect from April 1.
In order to avail of this exemption, an individual importer needs to produce a certificate from a central or state director of health services or a district medical officer or civil surgeon, a Finance Ministry release said.
Drugs and medicines generally attract a basic customs duty of 10 per cent. Some categories of lifesaving drugs and vaccines attract a concessional rate of 5 per cent or nil.
In its meeting in September 2021, the GST Council had reduced tax rates for several life-saving drugs. Life-saving drugs Zolgensma and Viltepso used in treatment of spinal-muscular atrophy were exempted from GST when imported for personal use. At that time, the GST rate for Keytruda was cut to 5 per cent from 12 per cent.
A Finance Ministry statement said: “While exemptions have already been provided to specified drugs for treatment of spinal muscular atrophy or duchenne muscular dystrophy, the government has been receiving representations seeking customs duty relief for drugs and medicines used in treatment of other rare diseases.”
The announcement comes after Congress leader Shashi Tharoor Tuesday shared an incident of a couple who had approached him for seeking exemption for a drug they had imported for their young daughter.
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