Sunday, 7 February 2016

Govt withdraws customs exemption on 74 drugs

Govt withdraws customs exemption on 74 drugs

As many as 74 drugs, including life saving ones used for treating cancer and HIV, will see sharp rise in prices as the government has withdrawn customs duty exemption on their imports. The Central Board of Excise and Customs (CBEC) last week issued a notification withdrawing exemption of levy of basic customs duty on as many as 74 drugs.

The medicines on which customs duty will now be imposed include the ones used for treating kidney stones, cancer chemotherapy and radiotherapy, life-threatening heart rhythm disorders, diabetes, Parkinson's disease, bone diseases, antibiotic to treat infections.

Besides, drugs used for bacterial infections, leukemia, anesthetic medication, human immunodeficiency virus (HIV) or hepatitis B virus cells, allergies, arthritis, lupus and ulcerative colitis might also see spurt in prices. Also drugs used in blood dilating medicine or for treating menopause, glaucoma, anogenital warts, poisoning by a chemical or pesticide, growth failure in children and adults who lack natural growth hormone would also attract customs duty.

"The withdrawal of exemption from basic customs duty for certain drugs and medicines including life-saving drugs is intended to provide protection to the domestic manufacturing industry and enhance the attractiveness of make in India initiative," KPMG India Partner and Head of Indirect Tax Sachin Menon said.

"An increase has also been made in the customs duty rates of certain life saving drugs such as abciximab, anti-rabies immunoglobin, FSH, procarbazine and saquinavir to 35 per cent," Deloitte in India Senior Director MS Mani said.These changes signify the intention of the government to promote domestic manufacture of these items as imports would now become more expensive, Mani said.

Menon said the move seems to be in line with the government's objective to rationalise the duty exemptions.

(Source: PTI)

1 comment:

  1. Antiepileptic drugs are quite costly but at no time are their price controlled.The price of this class of drug is always on the rise.And therefore we have to consume AED's which have more side effects,because they are comparitively cheaper.One of the drug company has introduced the generic version of an AED in USA,but has not done it here.Every time there is a price control introduced,its always the life style diseased patients who benefits from it.Why?We have done nothing wrong by means of of our life style to get a seizure disorder.I have worked with this IMA guys.They are no good I will tell you.There are many doctors who despise IMA's.People who suffer from seizure disorders do not get any kind of monetary security from any where unlike other patients who get very good social support and job security.Thanks.