Govt restores customs duty exemption on 3 drugs

The Union government had on February 5 removed the exemptions on 76 life-saving drugs

Coming under public pressure, the Centre on Wednesday restored the customs duty exemption on three drugs — octreotide, somatropin and anti-haemophilic factor concentrate (VIII and IX).

The government had removed the exemptions on 76 life-saving drugs on February 5. Consequently, out of 76 drugs, customs duty on 15 increased from zero to 35 per cent and on other 61 drugs, the duty rose from five per cent to 10 per cent, respectively.

However, after strong protests by patients suffering from haemophilia, the Central Board of Excise and Customs (CBEC) issued a notification on Wednesday restoring the custom duty exemptions on anti- haemophilic factor concentrate (VIII and IX).

Octreotide and somatropin were a part of the 61 drugs list where the duty rose from 5 to 10 per cent. Now with the CBEC notification, they will have a duty of five per cent again.

Octreotide is used to treat hormonal disorder, besides symptoms of severe diarrhoea and flushing caused by cancer. Somatropin is used to treat growth failure in children and adults, who lack natural growth hormone. It is also used to treat chronic kidney failure.

Anti-haemophilic factor concentrate (VIII and IX) is used to treat heamophilia, which is a genetic bleeding disorder involving a lack of functional clotting of blood.

Even as its move has been criticised, the government has defended it saying drugs removed from the exemption list were capable of being produced in India and such a move would promote domestic manufacturing.