Duty exemption to give relief to pharma industry, chronic patients

In a bid to support the pharmaceutical sector and improve access to critical healthcare, the government has proposed expanding import duty exemptions on pharmaceutical raw materials and medical equipment in the forthcoming national budget.

A proposal has been placed to add 79 new items to the duty-free list.

The initiative is designed to reduce production costs for drug manufacturers and lower treatment expenses for patients suffering from cancer, kidney ailments, and vascular diseases.

The fiscal year 2025–26 budget proposal includes duty waivers on 23 raw materials used in cancer drug production, 36 items for managing chronic illnesses like diabetes, and 20 types of medical equipment.

Currently, over 200 pharmaceutical products benefit from existing duty exemptions.

To further enhance healthcare accessibility, the government also plans to eliminate the 10 percent customs duty currently imposed on medical equipment imported by hospitals.

Additionally, the government has introduced a 1 percent import duty under a new category for the tangential flow filtration (TFF) system, an essential component in vaccine production.

TFF systems were previously classified under categories with significantly higher import duties.

Moreover, the customs duty on items categorized under HS Code 3917.39.90—a classification widely used by pharmaceutical manufacturers—has been reduced from 25 percent to 15 percent, offering further relief to the industry.