Major Initiative by Finance Ministry Aims to Lower Treatment Costs for Patients Battling Cancer
GST reduced from 12% to 5%
AB News, New Delhi: In a significant policy shift aimed at alleviating the financial burden on cancer patients, the Department of Revenue under the Ministry of Finance has announced the reduction of customs duty to nil on three essential anticancer drugs: Trastuzumab Deruxtecan, Osimertinib and Durvalumab. Additionally, the Goods and Services Tax (GST) on these drugs has been decreased from 12% to 5%. This dual reduction in taxation promises to make these life-saving medications more affordable, offering hope to countless patients across the country.
Details of the Notification
This pivotal change was formalized through two notifications: Notification 30/2024 dated July 23, 2024, which addressed the customs duty, and Notification 05/2024 dated October 8, 2024, which laid out the revised GST rates. According to the Drugs (Prices Control) Order, 2013 (DPCO, 2013), the Maximum Retail Price (MRP) of drugs must include all applicable taxes and duties. Consequently, the National Pharmaceutical Pricing Authority (NPPA) has mandated manufacturers to revise the MRP of these drugs to reflect the lower taxation levels and effectively pass on the benefits to consumers.
Impact of the Price Reduction
As per the NPPA’s directive, manufacturers have complied by reducing the MRP for the specified drugs. The new prices, which take effect immediately, are expected to alleviate the financial strain on patients requiring these treatments. Below are the MRP adjustments reported by the manufacturers for each drug:
1. Durvalumab (Imfinzi)
| Formulation | Company | Pre-Revised MRP (Rs) | Revised MRP (Rs) |
|---|---|---|---|
| Durvalumab Injection 120 Mg (2.4 ML) | AstraZeneca Pharma India Limited | 45,500 | 40,790.96 |
| Durvalumab Injection 500 Mg (10 ML) | AstraZeneca Pharma India Limited | 1,89,585 | 1,71,324.27 |
2. Osimertinib (Tagrisso)
| Formulation | Company | Pre-Revised MRP (Rs) | Revised MRP (Rs) |
|---|---|---|---|
| Osimertinib 40 Mg Tablet (10 tablets) | AstraZeneca Pharma India Limited | 1,50,154 | 1,40,769.38 |
| Osimertinib 80 Mg Tablet (30 tablets) | AstraZeneca Pharma India Limited | 4,55,010 | 4,16,492.48 |
| Osimertinib 80 Mg Tablet (10 tablets) | AstraZeneca Pharma India Limited | 1,51,670 | 1,38,830.83 |
3. Trastuzumab Deruxtecan (Enhertu)
| Formulation | Company | Pre-Revised MRP (Rs) | Revised MRP (Rs) |
|---|---|---|---|
| Trastuzumab VIAL 100mg/5ml | AstraZeneca Pharma India Limited | 1,87,000 | 1,67,069.17 |
Compliance and Next Steps
In compliance with the notified changes, pharmaceutical manufacturers have already begun filing the necessary information with the NPPA regarding the revised prices. The NPPA is expected to monitor these shifts closely to ensure adherence by the companies involved.
Innovations and Technology Integration
In addition to the reduction in drug prices, significant advances have also been made in drug traceability. The Ministry of Health & Family Welfare amended the Drugs Rules, 1945, compelling manufacturers of the top 300 drug brands to affix barcodes or QR codes to their packaging. This initiative, effective from August 1, 2023, aims to enhance transparency and authentication, further benefitting consumers.
