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Cancer Drug Costs Slashed: GST Exemption Aids Patients
5 Feb
Summary
- GST fully exempts 33 lifesaving cancer drugs, reducing patient expenses.
- Custom duty on 17 cancer drugs reduced to improve treatment affordability.
- Tobacco products now face the highest tax rate of 40% to curb consumption.
India has implemented substantial tax reforms to bolster public health, focusing on making cancer treatment more affordable. The Goods and Services Tax (GST) council has recommended a complete exemption for 33 life-saving cancer drugs, shifting their tax burden from 12% to zero. Furthermore, three critical drugs for rare diseases and cancer now carry a 0% GST, down from 5%.
In a related move, custom duties on 17 cancer drugs were reduced in the latest budget, directly easing the financial strain on patients. These measures, championed by oncologists from AIIMS, aim to make healthcare more accessible and reduce out-of-pocket expenses.
The country has also levied a 40% tax on tobacco products, the highest for any goods category. This significant increase, effective from February 1, 2026, is intended to curb consumption, prevent premature mortality, and avert catastrophic health expenditures.
These economic policy changes are seen as a model for other nations with similar health burdens. They reflect a balanced approach to supporting treatment, encouraging healthier lifestyles, and reinforcing India's commitment to equitable cancer care.
