Facing flak for withdrawing Customs duty concessions on life-saving drugs, the Finance Ministry on Wednesday restored exemptions on three drugs, used to treat hormonal disorder, growth failure and haemophilia.

The Central Board of Excise and Customs issued a notification to include three drugs — octreotide, somatropin and anti-haemophilic factor concentrate (VIII and IX) — for exemption from Customs duty.

The decision is understood to have come after consultations with the Ministry of Health and the Departments of Pharmaceuticals and Revenue, following an intervention by the Prime Minister’s Office (PMO).

In a bid to encourage domestic manufacturing of critical pharmaceuticals as part of the ‘Make in India’ campaign, the government had last month removed 76 life-saving drugs and bulk drugs from Customs duty exemptions. Drugs that are not exempted will attract Customs duty at rates ranging between 5 and 22 per cent.

This led to concerns that drug prices would increase, especially in categories that did not have many local producers.

This was, for instance, the case with regard to the anti-haemophilic factor concentrate. With just two local producers, the products were imported, largely from multinational Baxter.

Supply of the product was already running short in several States and people with haemophilia were hopeful that the PMO would step in to resolve the situation.

Related Topics