GSTnews item7 February 2016

Customs duty rise on life-saving drugs unlikely to affect patients

News Update

Customs duty rise on life-saving drugs unlikely to affect patients

Published Date: Feb 08, 2016
Source: ICAI PD Committee
Even as the government has imposed a customs duty of 35 per cent on 15 life-saving drugs, it is unlikely to affect patients as these drugs are also manufactured by Indian generic drug makers and sold at similar prices. Moreover, six of 15 drugs in the list already fall under the government's price control order. "Indian drug companies are perfectly capable of manufacturing these drugs for our domestic market. In fact, many of the companies are already doing it and exporting it to countries like the US as there is no excise duty. Therefore, the patients will not be affected as retail price increase for any drug is highly unlikely. If there is an increase, it would be marginal," said M S Mani, senior director at Deloitte in India.
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