On Thursday, the Central Government announced that it will exempt basic customs duty on medicines imported for personal use to treat rare diseases, effective from April 1. This announcement was made in accordance with the National Policy for Rare Diseases 2021, which provides a list of rare diseases for which the waiver is applicable. According to a statement from the finance ministry, ‘The Central Government has given full exemption from basic customs duty on all drugs and food for special medical purposes imported for personal use for the treatment of all rare diseases listed under the National Policy for Rare Diseases 2021.’
Usually, drugs attract a 10% basic customs duty, while life-saving drugs and vaccines attract concessional rates of 5% or nil. However, Pembrolizumab (Keytruda), which is used to treat various cancers, has been exempted from basic customs duty altogether. To avail of this exemption, individuals must produce a certificate from the Central or State Director of Health Services or District Medical Officer/Civil Surgeon of the district.
The government’s move to exempt customs duty on medicines for rare diseases has been welcomed by many. Drugs and special foods used to treat these diseases are costly and must be imported.
The ministry noted that, for a child weighing 10 kg, the annual cost of treatment for some rare diseases could range from Rs 10 lakh to more than Rs 1 crore per year, with treatment being lifelong and the drug dose and cost increasing with age and weight. ‘This exemption will result in substantial cost savings and provide much-needed relief to the patients,’ the ministry said.
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