Union Budget 2024: Doctors, industry hail move to exempt 3 cancer drugs from customs duty

Industry experts and oncologists hailed on Tuesday Union Finance Minister Nirmala Sitharaman’s proposal to fully exempt three cancer medicines from custom duties as she presented the Union Budget 2024 in the Lok Sabha.

Sitharaman said, “To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties.”

The cancer drugs

The finance minister proposed to cut custom duties on Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 10 per cent to nil. Trastuzumab Deruxtecan, Osimertinib and Durvalumab are key drugs in the fight against cancers.

• Trastuzumab Deruxtecan: This is an antibody-drug conjugate used primarily to treat HER2-positive breast cancer that has spread to other parts of the body (metastatic), said Dr Mandeep Singh Malhotra, the director of surgical oncology at Delhi’s CK Birla Hospital. It is also being studied for use in other types of cancer, such as gastric cancer, he said.

• Osimertinib: This is a targeted therapy used to treat non-small cell lung cancer (NSCLC) with specific mutations in the EGFR (epidermal growth factor receptors) gene. It is particularly effective against cancers that have developed resistance to earlier generations of EGFR inhibitors, Dr Malhotra said.

• Durvalumab: This is an immunotherapy drug that works by blocking the PD-L1 protein, helping the immune system to attack cancer cells. It is used to treat non-small cell lung cancer (NSCLC) and urothelial carcinoma (bladder cancer), he said.

How this budget proposal will help patients

Medical oncologist Dr Shyam Aggarwal of Delhi’s Sir Ganga Ram Hospital said, “All  imported life-saving drugs are costly and customs duty exemption is a welcome step. Cancer drugs are very expensive and life saving. Patients require long term treatment.”

More from India

'First Assam visit after Op Sindoor': PM Modi inaugurates projects worth Rs 18,530 cr India to host fifth Coast Guard Global Summit in Chennai in 2027

“Trastuzumab Deruxtecan is a breast cancer drug and can be used in all cancers with Her2 positive gene. Osimertinib is lung cancer drug for EGFR mutation,” Dr Aggarwal said.

Mutations in epidermal growth factor receptors (EGFR) are found to be associated with some lung cancers.

Durvalumab is also a drug for lung and biliary tract cancers, he said. “All these cancers are quite common in India and detected in late stages in our country.”

Dr Ashutosh Raghuvanshi, MD & CEO, Fortis Healthcare Limited, said, “We appreciate the government’s decision to exempt three cancer drugs from customs duty in the FY 2024-25 Budget. Cancer treatment often involves a significant financial burden for patients and their families.”

Impact Shorts

More Shorts

'New dawn': PM Modi meets Manipur violence victims in first visit since 2023 unrest

CP Radhakrishnan takes oath as Vice President of India

“By exempting these drugs from customs duty, the government has taken a concrete step towards alleviating this burden, making essential medications more affordable for those in need across the country. This decision also underscores the government’s commitment to addressing the growing cancer burden in India,” Dr Raghuvanshi said.

How cheaper these cancer drugs may become

The exact reduction in cost will depend on the current customs duty rates and other associated costs such as import taxes and logistics.

Exemption from basic customs duty could potentially reduce the price by 10-20 per cent, making these treatments more affordable for patients. However, precise figures would require detailed pricing and duty structure analysis.

How commonly these drugs are prescribed

• Trastuzumab Deruxtecan: This is commonly prescribed for patients with advanced HER2-positive breast cancer who have not responded to other treatments. It is a relatively new drug but has shown significant promise in clinical trials.

• Osimertinib: This is a widely prescribed drug for patients with EGFR-mutated non-small cell lung cancer. It is often used as a first-line treatment and is also prescribed for patients whose cancer has progressed despite other EGFR inhibitors.

• Durvalumab: This is commonly used in the treatment of advanced non-small cell lung cancers and bladder cancers, particularly after initial treatments have failed. It is also used in combination with other treatments to enhance efficacy.

How industry has reacted

FICCI Health Services Committee Chairman and Founder & Chairman Mahajan Imaging & Labs Harsh Mahajan said the exemption of customs duty on three life saving medicines for cancer treatment is a welcome step.

Fortis Hospital Principle Director and Chief of Neurology Praveen Gupta said the exemption of custom duties on three cancer medicines and reduction of duties on certain medical technologies such as x-ray tubes and flat panel detectors is a significant move to strengthen domestic capabilities in the healthcare sector.

“Though these measures are far less than expected, they will make advanced cancer treatments more affordable and accessible, addressing a critical need given the high cost of such treatments,” he said.

Union Budget has more to offer

Sitharamna also proposed changes in the basic customs duty (BCD) 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.

“My proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export-competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount,” Sitharaman said.

Proposing changes in the basic customs duty on X-ray tubes and flat panel detectors under the phased manufacturing programme will significantly benefit domestic OEM manufacturers by reducing costs, encouraging local sourcing, and enhancing competitiveness, said Dr Raghuvanshi.

This alignment will foster local manufacturing, drive technological investment, and support the ‘Atmanirbhar Bharat’ initiative, ultimately contributing to economic growth and job creation, he said.