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Government cuts import duty on drugs and food used for treatment of rare diseases

 Import duty on drugs: The government on Thursday waived basic customs duty on all drugs and food for medical purposes imported for personal use for the treatment of rare disease, according to the government press release. The import duty exemption will be effective from April 1. The government has also waived Pembrolizumab (Keytruda), used in […]

Import duty on drugs

 Import duty on drugs: The government on Thursday waived basic customs duty on all drugs and food for medical purposes imported for personal use for the treatment of rare disease, according to the government press release. The import duty exemption will be effective from April 1.

The government has also waived Pembrolizumab (Keytruda), used in treatment of various cancers, from basic customs duty.
It is noted there is generally 10 per cent basic duty tax applied on Drugs/ medicines. whereas few special categories of life saving drugs attract a concessional rate of 5 % or nil.

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“The Central Government has given full exemption from basic customs duty on all drugs and Food for Special Medical Purposes imported for personal use for treatment of all Rare Diseases listed under the National Policy for Rare Diseases 2021,” a statement by finance ministry said.

Food for medical purposes is a food formulation required to give nutritional help to persons who suffer from rare disease, disorder as a part of their dietary management.

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If anyone want to avail this exemption, the individual importer should have to give a certficate from Central or State Director Health Services or District Medical Officer/Civil Surgeon of the district.

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The government has been getting many representations seeking import duty relief for drugs used for the treatment of the rare diseases. However, exemptions have already been provided on drugs used for the treatment of spinal Muscular Muscular Atrophy or Duchenne Muscular Dystrophy.

Drugs, medicines and special food needed for the treatment of these rare disease are costly and need to be imported.

According to the health ministry,the estimated cost of treatment of rare disease for a child weighing 10 kg may vary from Rs 10 lakh to over Rs 1 crore per year with treatment being lifelong and drug dose and cost, increasing with age and weight.

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“This exemption will result in substantial cost savings and provide much needed relief to the patients,” the ministry said.

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Written By

Divya Richa

Updated By

Manish Shukla


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