Question : IMPORT DUTY ON AIDS AND CANCER DRUGS



(a) whether the Government has received a request to remove import duty on 60-odd anti-AIDS and cancer drugs in order to bring down prices;and

(b) if so,the details thereof and action taken by the Government thereon?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S.PALANIMANICKAM)

(a) In 2006-07, Government had received recommendation for full exemption from customs and excise duty on 27 anti-AIDS drugs and 69 anti-cancer drugs.

(b) The recommendation was examined in 2006-07 budget and 10 specified anti-AIDS, 14 anti-cancer drugs, and bulk drugs for their manufacture were provided a concessional customs duty of 5%.These drugs were also exempted from CVD equal to excise duty. With the reduction in Central Excise duty applicable to drugs and medicines from 16% to 8% in the budget 2008-09,and subsequent reduction to 4% on 7.12.2008, the import duty on all drugs has reduced further.