Budget 2024: Three Cancer Drugs Costing Lakhs to Become Cheaper as Govt Removes Customs Duty

Finance Minister Nirmala Sitharaman announced on Tuesday a full exemption of customs duties on three drugs used to treat cancer drugs — Trastuzumab Deruxtecan, Osimeritinib and Durvalumab.

“To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties,” Sitharaman said while presenting the Union Budget as she announced bringing down the duty from 10 per cent to nil.

Last year, the government exempted Pembrolizumab (Keytruda), used in the treatment of various cancers, from basic customs duty. All these drugs are used to treat harsh cancers. While Trastuzumab Deruxtecan is used to treat breast and stomach cancer, Osimeritinib treats specific types of lung cancers. Durvalumabs treats multiple cancers of the biliary tract, endometrial, liver, non-small, and small cell lung cancers.

All three drugs are manufactured by British-Swedish multinational pharmaceutical company AstraZeneca.

Trastuzumab Deruxtecan is sold under the brand Enhertu for almost around Rs 3 lakh per vial whereas Osimeritinib’s brand Tagrisso is sold at Rs 1.51 lakh for 10 tablets. Durvalumabs’s brand Imfinzi is sold at Rs 45,500 per vial for injection.

According to oncologists, exempting these drugs from basic customs duty will lower their import costs, making them more affordable for patients.

“This can improve access to advanced cancer treatments, reduce the financial burden on patients and their families, and potentially improve treatment outcomes by allowing more patients to benefit from these effective therapies,” said Dr Mandeep Singh Malhotra, director of surgical oncology, CK Birla Hospital, Delhi.

Dr DS Negi, chief executive officer, Rajiv Gandhi Cancer Institute & Research Centre hailed the move, calling it a “significant step” towards making essential cancer treatments more accessible and affordable for patients across India. “The high cost of cancer medications has been a major barrier for many patients, and this exemption will undoubtedly provide much-needed financial relief to those battling the disease,” he said.

Customs Duty Waived from X-Ray Tubes, Flat Panel Detectors

The minister also announced changes in custom duty on X-ray tubes and flat panel detectors for use in medical X-ray machines, albeit in a phased manner.

She said: “I also propose changes in the basic customs duty 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.”

The move has been hailed by domestic medical device makers. “We are thankful to the government for the reduction in duty on the import of components of X-ray equipment until these get to be produced in India,” Rajiv Nath, forum coordinator, Association of Indian Medical Device Industry (AiMeD), said.

“This enables continuity in investment in efforts to become a manufacturing hub of x-ray equipment globally,” he added.