Budget 2025: 'Customs waiver on life-saving drugs won't benefit most patients'
import duty waiver on life-saving drugs and drugs for rare diseases, announced in the union budget, will not benefit most patients as their prices will remain high due to patent monopolies that block generic supply, patients' representatives and activists said on Tuesday.
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They called for urgent action to address the abuse of these monopolies and allow generic production by Indian pharmaceutical manufacturers which, they said, could bring down drug prices by over 99%. They also reiterated their demand for goods and services tax (GST) exemption on drugs already available in the country.
The drugs listed for custom duty waiver are mostly those not available in the country and are under a patent monopoly. Duty waiver will not be enough to make these drugs affordable to patients, activists told ET.
«The custom duty waiver on some of the exorbitantly priced cancer and rare diseases drugs is welcome but is like a band-aid and does not highlight the underlying problem of high prices due to patent monopolies that block local production,» said Leena Menghaney, lawyer and consultant, specialising in public health, pharmaceuticals and intellectual property.
At present, the import duty on such drugs is 10%, though some are eligible for a lower tax.
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