New Delhi, February 5 (IANS). Exempting life-saving cancer drugs from GST and increasing taxes on tobacco products to make treatment of deadly diseases like cancer accessible and affordable are important steps towards strengthening public health in the country. This finding has come to light in a new study conducted by oncologists of the All India Institute of Medical Sciences (AIIMS).
According to the study, the GST Council, in its 56th meeting held in September last year, had recommended completely exempting 33 life-saving drugs (including those used in cancer treatment) from GST. These include anti-cancer drugs reduced from 12 percent to zero percent and three important medicines for rare diseases and cancer, which earlier attracted 5 percent GST.
The study says that these decisions have made health services more affordable and accessible and have reduced out-of-pocket expenditure on patients.
Earlier this week, Union Finance Minister Nirmala Sitharaman had also cut the basic custom duty on 17 cancer drugs in her budget speech.
Speaking to IANS, Dr Abhishek Shankar, Department of Radiation Oncology, AIIMS, said, “The recent GST reforms in India are a big step towards making cancer treatment more affordable and accessible. By exempting 33 life-saving cancer and rare disease drugs from GST and reducing taxes on medical devices, the government has directly reduced the financial burden on patients and their families.”
The study also pointed out that the GST Council has increased the tax slab on tobacco products to 40 percent, the highest on any commodity category in the country.
Regarding the benefits of this decision, which came into effect from February 1, the study said that it can lead to positive results like increase in life years, saving in treatment costs, reduction in premature deaths, avoidance of catastrophic expenditure on health and reduction in poverty.
Tobacco is considered the largest preventable cause of cancer globally. According to a report by the World Health Organization and its International Cancer Research Agency on World Cancer Day, tobacco is responsible for about 15 percent of all new cancer cases.
“Imposing higher taxes on tobacco products strengthens prevention, discourages consumption, and generates revenue that can be reinvested in public health,” said Dr. Shankar.
The study also noted that such economic and structural policy changes could serve as a guide for other countries with similar socio-economic conditions and disease burden.
“While it is critical that benefits reach patients in a timely manner, these reforms reflect a balanced policy approach that supports treatment, promotes healthy behaviors, and strengthens India’s commitment to equitable cancer care,” Dr. Shankar said.
–IANS
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