Indian Government Decides to Eliminate Tax on Drugs & Food Imports
18 April 2023
Nearly 70-90 million people
could benefit from the government's decision to release food and drugs imported
for the treatment of all unusual disease therapies from basic customs duties.
This move from the Government is indeed worthwhile when such medications were
imported for personal use. It is estimated that this exemption will result in
considerable cost savings for the ministry and will have indeed a great relief
for Indian patients."
According to the National
Policy for Rare Diseases 2021, the disease would be Wilson's disease, spinal
muscular, cystic fibrosis, Pompe disease, and more. There are expensive
medications and foods required for the treatment of these diseases, and they
must be imported. Now the drugs will be easily available for the treatment of
rare diseases to control. This policy benefits the victim with financial help
The government's move on
exemption derives from reports that numerous Indian families have to step up to
raise money through online fundraising campaigns to receive high-priced
Presenting data of India
Imports drugs in other top countries without claiming any tax over the same.
India Import Drugs from top
The evaluation states are USD 2,738 million in 2021 while in 2022 there is USD 3,337 million. There is deterioration between the stats of 2022 as compare to 2021.
What are the details of the
new duty exemption?
The Centre Government grants a
tax exemption for drugs, medicines, or food used for distinct medical
emergencies, not for normal medicines.
Presently, the individual
importer must obtain a certificate from the district medical officer or civil
surgeon for being eligible for this exemption, according to a finance ministry
How much does the tax on
life-saving drugs and medicines cost?
There is 10% rebate for drugs
and medicine. Also, there are 5% rebates or nil applied in a few segments of
vaccines & lifesaving drugs.
There was the official
agreement of reducing the tax rate on ample life-saving drugs in September. The
drugs for life-saving drugs are Zolgensma and Viltepso which are used in
dealing with patients with spinal muscular atrophy. They are bit expensive
though helpful in healing the disease quickly.
What Steps are required to
avail the Government policy for funding drugs?
The implementation of
Government policy initiates with the provision of incentives to pharmaceutical
companies to progress new treatments. They will also consider the reimbursement
to patients who want expensive drugs as per the disease.
Those steps would be after the
There is an offering of an
advanced process for out-and-out submission and marketing exclusiveness for the
firm’s products. This is when there is profit once production values are
The drug's availability must
certify that they are subjectively safe to process the patient’s medicines.
Few Countries Involvement in
reimbursement programs for patients
The counties like Canada have
patient reimbursement plans. There is an example of drugs received by the
patients in this program. Federal funding should be allotted for the drugs used
for rare diseases in reimbursement programs. A comprehensive budget requires a
responsible strategy for every drug supply to prevent inadequate funds. This
strategy from the counties helps to support programs for the upcoming costs to
analyze funding consequences for the better availability of the reimbursement.
Planning for the Future
With a convincing strategy and
infrastructure, the policy framework for drugs for rare diseases in developed
countries can be improved. Achieving the goal of the population percentage
grounded on clinical data is also one of the essential steps. Forwarding the
framework development for the support of achieving fair health care for the
people involves enlarged approachability to real treatment.