Call for Tax Exemption on Life-saving Drugs in India

Kiran Mazumdar-Shaw, chairperson of Biocon Ltd, urges the Indian government to eliminate taxes on drugs for cancer and chronic diseases. With high out-of-pocket expenses for medications, she advocates making life-saving therapies affordable by waiving taxes. A shift in tax policy could profoundly impact patients in India.

India's high tax burden on life-saving medications, particularly those for cancer and chronic diseases, may soon face calls for reform. Kiran Mazumdar-Shaw, chairperson of major drugmaker Biocon Ltd, is advocating for the elimination of such taxes ahead of the anticipated budget announcement by Prime Minister Narendra Modi.

Mazumdar-Shaw emphasizes that most medical expenses in India are paid out-of-pocket, with high costs even for diagnostic scans. She stresses the importance of making life-saving therapies affordable by waiving taxes, especially for drugs with a monthly cost of over 5,000 rupees ($60).

The call for tax reform also extends to reducing import duties on high-tech medical equipment and materials needed for precision medicines. Despite the government’s previous efforts to cut some taxes, a broader reform could benefit patients significantly. This move comes as India seeks economic advantages amidst potential global shifts in pharmaceutical trade dynamics.