Health Budget 2024: In a significant move aimed at alleviating the financial burden on cancer patients, the government has proposed to fully exempt three cancer medicines from customs duties. The announcement was made by Finance Minister Nirmala Sitharaman while presenting the Union Budget for 2024-25 in the Lok Sabha Tuesday. The medicines — Trastuzumab Deruxtecan, Osimertinib, and Durvalumab — will see a reduction in customs duties from 10 percent to nil.


Sitharaman emphasised that this decision is part of a broader strategy to provide relief to cancer patients. "To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties," she stated. Additionally, changes in the basic customs duty (BCD) on x-ray tubes and flat panel detectors for use in medical x-ray machines were proposed to synchronise with domestic capacity addition under the phased manufacturing programme.


"My proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export-competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount," Sitharaman added.


The health sector has welcomed these measures.


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Cancer Treatment Costs And Accessibility


Cancer remains a major health concern in India, with the disease dangerously increasing its footprint each year. Besides late detection of the disease, the high cost of cancer treatment has been a significant barrier for many patients in India, contributing to a high mortality rate even as their families grapple with the financial strain of cancer care. According to a report by the parliamentary committee under the Union Ministry of Health, only about 20 percent of patients currently receive radiation therapy, despite WHO recommendations.


The exemption of customs duties on Trastuzumab Deruxtecan, Osimertinib, and Durvalumab is expected to reduce the overall cost of these expensive treatments.


Harsh Mahajan, Chairman of the FICCI Health Services Committee and Founder & Chairman of Mahajan Imaging & Labs, hailed the decision to wave customs duty from the three life-saving cancer medicines as a "welcome step".


Praveen Gupta, Principal Director and Chief of Neurology at Fortis Hospital, said the move will make advanced cancer treatments more affordable and accessible. "The exemption of customs duties on these cancer medicines and the 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. Though these measures are far less than expected, they will address a critical need given the high cost of such treatments," he said.


"The high cost of cancer medications has been a major barrier for many patients, and this exemption will undoubtedly provide much-needed financial relief to those battling the disease," said DS Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre. 


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Impact On Domestic Manufacturing


In addition to the measures aimed at reducing the cost of cancer treatment, FM Sitharaman also announced a reduction in the basic customs duty (BCD) on mobile phones and their parts to 15%. This is in line with the government's strategy to promote domestic manufacturing and enhance local value addition.


Dr Sanjeev Singh, Medical Director of Amrita Hospital, Faridabad, expressed support for these initiatives, stating: "The proposed changes in basic customs duties for x-ray tubes and flat panel detectors will bolster the domestic manufacturing of essential medical equipment, ensuring better accessibility and reduced costs."


Calling the Union Budget a "game-changer" for the gems and jewellery industry, Vipul Shah, Chairman, Gem & Jewellery Export Promotion Council, said this will bring India a step closer towards becoming "a global diamond trading hub”.