Finance Minister announces customs duty exemptions for cancer drugs

Finance Minister Nirmala Sitharaman announced a policy change on Tuesday about customs duty exemptions for cancer drugs. This includes three critical medications: Trastuzumab Deruxtecan, Osimeritinib, and Durvalumab. This move aims to provide substantial relief to cancer patients by reducing the cost of these essential medications.

In her Union Budget presentation, Sitharaman said, “To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties.” This announcement marks a reduction in the duty from 10 per cent to nil, continuing the government’s effort to make cancer treatments more affordable. Last year, Pembrolizumab (Keytruda), another important cancer drug, was also exempted from basic customs duty.

Each of these drugs targets specific types of cancer. Trastuzumab Deruxtecan is used to treat breast and stomach cancer. Osimertinib is effective against certain types of lung cancers and Durvalumab is employed in treating various cancers, including those of the biliary tract, endometrial, liver, and both non-small and small cell lung cancers. These drugs are all manufactured by the British-Swedish multinational pharmaceutical company AstraZeneca.

The cost of these medications can be quite high. For instance, Trastuzumab Deruxtecan, sold under the brand Enhertu, costs around Rs 3 lakh per vial. Osimertinib which is marketed as Tagrisso, is priced at Rs 1.51 lakh for 10 tablets, while Durvalumab’s brand Imfinzi is sold at Rs 45,500 per vial for injection. Oncologists believe that exempting these drugs from customs duties will lower their import costs, thereby making them more affordable for patients.

Industry Response to Customs Duty Changes

Dr. Mandeep Singh Malhotra, Director of Surgical Oncology at CK Birla Hospital in Delhi, stated, “This can improve access to advanced cancer treatments, reduce the financial burden on patients and their families, and potentially improve treatment outcomes by allowing more patients to benefit from these effective therapies.”

Dr. DS Negi, Chief Executive Officer of Rajiv Gandhi Cancer Institute & Research Centre, said the move is a “significant step” toward making cancer treatments more accessible and affordable across India. 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.”

In addition to the exemptions on cancer drugs, the Finance Minister also announced changes in customs duties related to medical equipment. These changes are part of a manufacturing programme aimed at synchronising with domestic capacity additions. Sitharaman said, “I also propose changes in the basic customs duty on X-ray tubes and flat panel detectors for use in medical X-ray machines under the phased manufacturing programme so as to synchronise them with domestic capacity addition.”

The announcement has been welcomed by domestic medical device manufacturers. Rajiv Nath who is the Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD), expressed, “We are thankful to the government for the reduction in duty on the import of components of X-ray equipment until these get to be produced in India.” He added, “This enables continuity in investment in efforts to become a manufacturing hub of X-ray equipment globally.”

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