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Paswan: duty cut on drugs a major relief to common man

NEW DELHI: Union Minister for Chemicals and Fertilizers Ram Vilas Paswan has said excise duty cut on drugs and relaxation in customs duty on life-saving medicines will bring down retail prices of medicines by at least 5 per cent, giving a major relief to the common man. He also welcomed the complete removal of excise duty on anti-AIDS drug Atazanavir, and bulk drugs for its manufacturer.

Lauding Finance Minister P. Chidambaram for showing concern towards poor people and those suffering from various diseases, Mr. Paswan hoped that the pharmaceutical industry would pass on the entire benefit to consumers without any delay.

In his budget proposals for 2008-09, Mr. Chidambaram has reduced excise duty on all drugs (formulations), dressing pads, some surgical items and first-aid boxes and kits and other items from 16 per cent to 8 per cent. Similarly, excise duty on anti-AIDS drug Atazanavir, and bulk drugs for its manufacturer has been completed removed. The Finance Minister has also lowered customs duty on certain specified life-saving drugs from 10 per cent to 5 per cent, while bulk drugs used for manufacture of such drugs have been totally exempted from customs duty.

“Cut in excise and customs duty would bring down the prices of drugs, making it more affordable for the common man. As per the stated position of the UPA government in the National Common Minimum Programme to make available drugs to common man at affordable prices, I have been demanding a cut in the excise structure,” he said.

Mr. Paswan said cut in customs duty on certain life-saving drugs and bulk drugs would lead to reduction in the prices of drugs for the treatment of Hepatitis B, diabetes, thyroid imbalance, cancer and asthma besides making some vaccines cheaper.

Welcoming cut in anti-AIDS drug prices, he said: “It is a very timely step that would give a major boost to the efforts of the government and other agencies in fighting the dreaded disease. Other steps announced in the budget, particularly those related to development of health infrastructure and for senior citizens, will take care of the needs of the health sector.”

Mr. Paswan, who is also in charge of the Steel Ministry, said the reduction in customs duty on steel melting scrap would help in making available rods and rounds used by common man in construction activity. “The reduction of tax to two per cent from three per cent would further help in making steel available at affordable rates. Reduction in customs duty on import of capital goods would boost these investments in a big way and would help existing steel companies who have embarked on major expansion projects attract new investors in the sector,” he said.

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