The government has decided to withdraw customs duty exemption on imports of 76 life-saving drugs; however, experts say that this will not have much of an impact on patients. The reason, as given by domestic drug makers, is that a number of drugs on the list are also produced locally.
Last week, some stakeholders had expressed concern over government’s decision, saying that certain products, especially
However, as per experts, the government did so to encourage local producers and cut dependence on Chinese supplies.
"There is no need for panic - patients won't be affected because of this,"
According to Veeramani, the government's withdrawal of customs duty exemptions will only lead to marginal increase in duty, which can be absorbed by manufacturers. Only 15 life-saving formulations and about 60 related bulk drugs (ingredients used in manufacture of drugs), have had their exemptions withdrawn.
"Out of 76 drugs, only 15 items have 0% duty, whereas 61 items already had a concessional duty of 5%. This will only increase by 2.5%. At the finished product stage, there will only be a net increase of around 2%-3%," said Veeramani.
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