In a significant move towards affordable cancer care, India’s GST Council has exempted 33 life-saving drugs, including key cancer treatments, from taxation. This decision, hailed by experts at AIIMS as a game-changer for public health, comes alongside a steep tax increase on tobacco products to 40 percent—the highest slab for any commodity.
The AIIMS study, led by oncologists, underscores how these policy shifts are reducing out-of-pocket expenses for patients battling deadly diseases. Last September’s 56th GST Council meeting slashed GST on 12 anti-cancer drugs from 12 percent to zero, while three vital medicines for rare diseases and cancer dropped from 5 percent to nil. Finance Minister Nirmala Sitharaman further eased the burden in her recent budget speech by cutting basic customs duty on 17 cancer drugs.
Dr. Abhishek Shankar from AIIMS’s Radiation Oncology Department emphasized, ‘These GST reforms mark a major stride in making cancer treatment accessible. By freeing these drugs and medical devices from taxes, the government has directly lightened the financial load on patients and families.’
On the prevention front, the tobacco tax hike effective from February 1 is projected to yield multiple benefits: extended life years, lower treatment costs, fewer premature deaths, protection from catastrophic health spending, and reduced poverty rates. Tobacco remains the world’s leading preventable cause of cancer, accounting for nearly 15 percent of new cases globally, per WHO reports.
Dr. Shankar added, ‘Higher taxes on tobacco deter consumption, strengthen prevention efforts, and generate revenue for reinvestment in public health.’ The study positions these changes as a model for other nations facing similar disease burdens and socioeconomic challenges.
While ensuring timely benefits reach patients is crucial, these reforms reflect India’s balanced approach: supporting treatment, promoting healthy behaviors, and committing to equitable cancer care. As public health advocates celebrate World Cancer Day, this policy duo stands as a beacon of hope for millions.