New Delhi, February 5: Efforts to make treatment for life-threatening diseases like cancer more accessible and affordable have gained momentum in India. A new study by oncologists at the All India Institute of Medical Sciences (AIIMS) highlights the importance of exempting life-saving cancer medications from GST and increasing taxes on tobacco products as crucial steps for strengthening public Health in the country.
According to the study, the GST Council recommended a complete exemption from GST for 33 life-saving drugs, including those used in cancer treatment, during its 56th meeting held in September last year. This includes anti-cancer drugs that have seen a reduction in GST from 12% to 0%, along with three essential medications for rare diseases and cancer that previously incurred a 5% GST.
The study indicates that these decisions have made healthcare services more affordable and accessible, significantly reducing out-of-pocket expenses for patients.
Earlier this week, Union Finance Minister Nirmala Sitharaman announced a reduction in basic customs duty on 17 cancer drugs during her budget speech.
Dr. Abhishek Shankar from the Radiation Oncology Department at AIIMS stated, “Recent GST reforms in India are a significant step towards making cancer treatment more affordable and accessible. Exempting 33 life-saving cancer and rare disease medications from GST and reducing taxes on medical devices directly alleviates the financial burden on patients and their families.”
The study also noted that the GST Council has increased the tax slab on tobacco products to 40%, the highest for any category of goods in the country.
The benefits of this decision, effective from February 1, are expected to lead to positive outcomes such as increased life years, savings on treatment costs, reduced premature deaths, protection from catastrophic health expenditures, and a decrease in poverty.
Tobacco is globally recognized as the leading preventable cause of cancer. According to a report by the World Health Organization and its International Agency for Research on Cancer, tobacco accounts for approximately 15% of all new cancer cases.
Dr. Shankar emphasized, “Higher taxes on tobacco products strengthen prevention efforts, discourage consumption, and generate revenue that can be reinvested in public health.”
The study also mentioned that such economic and structural policy changes could serve as a guiding framework for other countries with similar socio-economic conditions and disease burdens.
Dr. Shankar concluded, “While it is crucial for benefits to reach patients promptly, these reforms reflect a balanced policy approach that supports treatment, promotes healthy behaviors, and reinforces India’s commitment to equitable cancer care.”