NEW DELHI: About 50 essential medicines, including those for diabetes and blood pressure, are likely to become cheaper as the government considers lowering their Goods and Services Tax, the Indian Medical Association (IMA) claimed on Wednesday.
Association members said the apex body of private practitioners has submitted a list of these medicines to the GST Council and held consultations with officials on reclassifying them under the exempted category.
According to IMA members, the proposal covers drugs used in the treatment of cancer, kidney disease, high cholesterol, tuberculosis, joint pain, and other chronic conditions. At present, many of these medicines attract a GST of 12 to 18 per cent.
“We have been pressing for this reduction for a long time. If accepted, it will significantly reduce out-of-pocket expenditure for patients,” IMA national president Dr. Dilip Bhanushali said.
Members said the body has recommended zero tax on insulin, oral anti-diabetic drugs, antihypertensives, cardiac medicines, and treatments for chronic kidney disease, thyroid disorders, osteoporosis, asthma, and COPD. The association also called for exemptions on intravenous immunoglobulin and drugs for blood-related conditions such as haemophilia and myelodysplastic syndromes.
The GST Council is expected to take up the matter in its upcoming deliberations. If approved, the reduction could lower the cost of several life-saving medicines that have seen steep price increases in recent years, offering much-needed relief to patients and families struggling with long-term treatment expenses.
The revisions under discussion include slashing tax rates on critical drugs from 12 per cent to 5 per cent, with certain medicines for rare diseases being considered for full exemption.
“The council seemed affirmative. We are hopeful that the government will consider our proposal as these drugs help treat a large number of non-communicable disorders rampant in the Indian population. Reduction in their cost would provide great relief in out-of-pocket expenditure for patients,” Dr. Bhanushali added.
Meanwhile, the association welcomed the government’s move to reduce GST on cancer drugs. “It will ease the financial burden on patients undergoing high-cost therapies such as chemotherapy and immunotherapy,” Dr. Bhanushali said.