Business

Union Budget 2022: Medical Technology Association of India expects reduction in GST, customs duties on medical devices

Union Budget 2022 Expectation: The MTaI organisation noted that reduced GST on medical cold chain would expand the healthcare sector and improve patient accessibility

Press Trust of India January 18, 2022 15:28:50 IST

New Delhi: The Medical Technology Association of India (MTaI) has urged the government to reduce GST and customs duties on medical devices, cold chain units and spare parts used in the healthcare appliances in the upcoming Union Budget.

The organisation noted that the reduction of GST on medical devices and medical cold chain from 12 per cent to 5 per cent would lead to the expansion of the healthcare sector through reduced costs improving patient accessibility, MTaI said in a statement.

The organisation, which represents research-based medical technology companies, also sought streamlining of Customs Duty and GST on spare parts.

Currently, the custom duty and GST on spare parts of medical equipment are currently charged at a higher rate than the equipment itself, it added.

MTaI has also suggested amendment in the Health Cess ad valorem imposition by removing the word 'Ad-valorem' so that the cess is implemented on Basic Customs duty (BCD) rate only.

Also Read: Budget 2022: NGOs hope for an increase in fund allocation for adolescents', elderly's health

The organisation has also sought allowance of tax computation on CSR expenditure, tax holiday to medical device research and development centres, creation of budgetary provisions for skilling and up-skilling of healthcare workers (HCWs) at all levels and expand the width of healthcare insurance.

"The government is looking at improving healthcare affordability in India and spreading its benefit to as many as possible. However high customs duties, burden of additional health cess, lack of incentives for R&D in the medical device sector and un-streamlined tax regime, need to be addressed first," MTaI Chairman Pavan Choudary stated.

The high customs duties have adversely impacted the costs of products in India which contradicts the government's efforts to provide low-cost healthcare to the masses through ambitious schemes such as AB-PMJDY, he added.

"Additionally, since the custom duty regime on most medical devices in neighboring countries of Nepal, Sri-Lanka, and Bhutan is lower than in India, the duty differential could lead to the smuggling of low-bulk-high-value devices," Choudary noted.

The result will not only be loss of revenue for the government but also the patient being beset with products which are not backed by adequate legal and service guarantees, he added.

"We feel the customs duty for medical devices and equipment should be brought down to 0-2.5 per cent," Choudary stated.

Read all the Latest News, Trending News, Cricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.

Updated Date: January 18, 2022 16:02:31 IST

also read

India

Yogi Adityanath-led Uttar Pradesh government presents over Rs 6.15 lakh crore budget for financial year 2022-23

The Uttar Pradesh budget was announced in the state Assembly by Finance Minister Suresh Kumar Khanna. It also has a provision of Rs 39,181.10 crore for the new schemes

News & Analysis

Realme Buds Air 3 Review: Best active noise cancellation in the segment

The Realme Buds Air 3 does better than its predecessor, the Buds Air 2, in almost every department for a small premium.

News & Analysis

Realme Narzo 50 & Narzo 50 Pro launched in India, check out the price, specs and launch deals

Realme has launched a new budget lineup of smartphones, the Narzo 50 5G. Prices for the Narzo 50 5G start at Rs 13,999, whereas the higher-end Narzo 50 Pro 5G starts at Rs 19,999