Revolutionizing Cancer Care: A New Era of GST Reforms

Recent GST reforms aim to enhance cancer care affordability by eliminating taxes on life-saving drugs, reducing expenses on medical equipment, and raising tobacco taxes. These changes are expected to alleviate financial burdens on patients and generate revenue to fund further cancer prevention and care initiatives.

In a significant shift towards more accessible cancer care, recent reforms to the Goods and Services Tax (GST) framework have eliminated taxes on crucial drugs and medical equipment. This initiative aims to ease financial pressures on patients, an issue highlighted by AIIMS oncologists in a newly published commentary.

Notably, the GST council has zero-rated 33 life-saving drugs, including those for cancer, from an earlier 12% tax, aiming to reduce treatment costs. Health and life insurance policies will also be free from GST, which oncologists assert will benefit middle- and lower-income families by lowering financial barriers to healthcare.

Furthermore, a sharp increase in tobacco taxation to 40% is expected to generate significant revenue, potentially redirectable into cancer care enhancement. The AIIMS researchers emphasize the importance of these reforms, cautioning that their success hinges on effective implementation and continuous monitoring.

(With inputs from agencies.)