Import Duty Waiver on Life-Saving Drugs
The Union Budget 2025 introduced changes to import duties on life-saving drugs. The government has waived import duties on 36 essential medications and reduced it for an additional six. This initiative aims to make critical treatments more affordable for patients in India. Despite the reduction in costs, most imported drugs remain under patent protection, keeping them expensive. Changes in Import Duties The basic customs duty on life-saving medicines is set at 5%. The 2025 Budget now exempts 36 drugs used for cancer and rare diseases from any import duty. Additionally, the import duty for six other life-saving drugs has been reduced to 5% from 7.5%. Another 37 drugs under patient assistance programs are also exempted from the duty. This policy supports patients reliant on imported medications for severe medical conditions. Goods and Services Tax on Medicines All finished formulations of medicines attract a GST of 12%. However, specific medicines for critically ill patients are taxed ...