Medicines from 10 multinational companies are listed in PAPs mentioned in the Budget. PAPs help soften the price-burden on patients, as expensive cancer and other critical drugs from these companies are provided to patients under arrangements – sometimes entirely free or at a reduced price or discount.
Companies benefiting from this directive should have a cost savings of at least 5 per cent and that should assist in greater patient coverage under PAP, said Hitesh Sharma, Partner and National life sciences tax leader, EY India. Industry-watchers said BCD varied across different medicines.
Video Credit: BusinesslineThe Finance Minister had said in her Budget speech: “Specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies are fully exempt from BCD, provided the medicines are supplied free of cost to patients. I propose to add 37 more medicines along with 13 new patient assistance programmes.”
Anil Matai, Director General with Organisation of Pharmaceutical Producers of India (OPPI) agreed the BCD exemption would help expand the programme to more patients, besides encouraging more companies to participate in similar schemes.
Lifesaving medicines
In fact, patients with cancer, rare diseases and other chronic illnesses could also see some relief, said industry-watchers, as the Budget exempted 36 lifesaving drugs and medicines from BCD. Another six lifesaving medicines were added to the list attracting concessional customs duty of 5 per cent. And full exemption and concessional duty was being extended to bulk drugs for the manufacture of the above, the FM said.
Public health voices, however, urged government to ensure the benefits are passed on to patients. KM Gopakumar with Third World Network, said drug pricing is not transparent, and similar measures had not benefitted patients, in the past.
The Budget also outlined daycare cancer centres in all district hospitals in the next 3 years. The FM said, “200 centres will be established in 2025-26.”
