FM Proposes to Reduce Customs Duty on Medical Equipments [Read Bill]

The Union Finance Minister Nirmala Sitharaman presented the full Union Budget 2024 today before the parliament at 11 am. The Union Budget proposes the reduction of the customs Duty on various medical equipment.

As an initiative to provide relief to the medical sector and patients of the country, the Budget proposes the change in the BCD (Basic Customs Duty) on X-Ray and Flat panel detectors for use in Medical X- Ray Machines.

This specific relief can be relieved for the equipment that comes under the “Phased Manufacturing Programme.” This is done so as to synchronize this relief with the “Domestic Capacity Addition”.

In its pre-budget recommendation submitted to the finance ministry ahead of the presentation of the Union Budget the Medical Technology Association has suggested to bring down the BCD on import of medical devices to 2.5% from the current range of 7.5 - 10%.

India is one among the countries which imposes high tax rates on sale of imported medical devices, countries like Singapore, Italy, Hong Kong charges no customs duty while Australia and Japan levy just 0.5 customs duty. This high rates ultimately causes burden to the patients.

Due to the high tax rates, a large number of medical devices are being imported illegally to India to avoid taxes and that will cause potential risk to the patients in a wider sense.

So with the reduction in the Customs Duty on Medical Equipment that would help in reducing the cost of healthcare services of the country and thereby provide the patients with the access to modern equipment and reduce smuggling of medical equipment.

In addition to this with a purpose of providing relief to the cancer patients and the medical sector of the country, “Three more medicines are fully exempted from the Customs Duties”.

To Read the full text of the Order CLICK HERE

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