GST Reduction on Cancer Drugs: A Step Towards Affordable Healthcare

GST Reduction on Cancer Drugs: A Crucial Move for Affordable Healthcare

In a significant move towards making life-saving cancer treatments more affordable, the Indian government has reduced the Goods and Services Tax (GST) on cancer drugs from 12% to 5%. The decision, announced during the 54th GST Council meeting, aligns with the government's goal to enhance healthcare accessibility and affordability, particularly for patients requiring costly cancer treatments.

Impact on Cancer Treatment Accessibility

The GST rate reduction comes after certain cancer drugs, including Trastuzumab, Osimertinib, and Durvalumab, were exempted from customs duties in the 2023 budget. Experts believe that this tax cut will help ease the financial burden on cancer patients, many of whom face long-term treatment costs that are often prohibitively high. The lower tax rates are expected to make these essential drugs more accessible to a larger number of patients in need, improving health outcomes and reducing treatment-related financial stress.

Expert Reactions to the GST Reduction

Healthcare experts across the country have welcomed the announcement. Dr. B.S. Ajaikumar, Executive Chairman of Healthcare Global Enterprises Ltd., praised the move as a much-needed step towards rationalizing healthcare costs. Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), highlighted the need to ensure access to life-saving medications as India faces an increasing burden of chronic illnesses, including cancer.

Dr. Manisha Karmarkar, CEO of DPU Super Specialty Hospital, highlighted the alarming cancer statistics in India, with an estimated 1.49 million new cases in 2023 and a projected 12.8% increase by 2025. The tax reduction, she said, will play a critical role in addressing the rising cancer burden and helping patients afford advanced treatments.

Cost Benefits for Patients

One of the drugs benefiting from the GST reduction, Durvalumab, is commonly used to treat gallbladder and lung cancer, both of which have high incidence rates in India. Experts estimate that the cost of six cycles of chemotherapy, including Durvalumab, could drop by 1-1.3 lakh rupees, providing substantial relief to patients.

Future Steps and the Road Ahead

While the reduction in GST rates is a positive step, healthcare experts stress the need for continued efforts to make cancer care more affordable. India's reliance on imports for cancer therapeutics remains a challenge, with many drugs still priced beyond the reach of average patients. The recent GST reduction is seen as a starting point, with further reforms necessary to ensure comprehensive healthcare access for all.

As the Indian government continues to prioritize healthcare reform, the focus on reducing the financial burden of cancer treatment reflects a broader commitment to improving the quality of life for millions of patients and their families. This policy shift underscores the importance of providing affordable healthcare options to address the growing cancer crisis in India.