Health Ministry welcomes Budget move to exempt 3 cancer drugs from customs duty

The customs duty exemption proposed for three cancer medicines in the Union Budget will improve the affordability of the drugs, the Union Health Ministry said on Wednesday.

The request for customs duty exemption for Trastuzumab deruxtecan (for breast cancer or gastroesophageal adenocarcinoma), Osimertinib (drug for lung cancers with specific mutation), and Durvalumab (for lung and biliary tract cancers) was forwarded by the Health Ministry to the Ministry of Finance keeping in view 27 lakh cancer patients in the country.

The government proposes to cut customs duties on the three drugs from 10 per cent to nil.

Union Finance Minister Nirmala Sitharaman also revised the custom duty rates on X-ray tubes and flat panel detectors, a move which is expected to positively impact the X-ray machine industry by enhancing component availability at lower costs.

“This change is anticipated to boost the domestic medical device sector, contribute to component availability at lower costs and reduced healthcare costs, making advanced medical imaging more accessible and affordable,” the ministry said.

The budget expenditure for FY 2024-25 under the National Health Mission (NHM) has also been increased from Rs 31,550 crore to Rs 36,000 crore.

Trastuzumab injection 440mg/50ml is a scheduled drug. Its current applicable ceiling price is Rs 54,725.21 per vial. However, its other strength variants are not under the schedules list. Trastuzumab comes in different strengths and dosages with a combined annual turnover of more than Rs 276 cr, the ministry said.

The other two medicines — Osimertinib and Durvalumab — are non-scheduled medicines. Hence, NPPA monitors the maximum retail price (MRP) of the non-scheduled formulation to ensure the same does not increase by more than 10 per cent of MRP during the preceding 12 months. The annual turnover of Durvalumab for 2023-24 was Rs 28.8 crore, the ministry said.