Centre waives import duty on Covid vaccine, oxygen and related equipment

New Delhi: The government on Saturday waived customs duty on the import of Covid vaccines as well as medical-grade oxygen and related equipment as the nation battled its worst health crisis with a 'tsunami' of infections setting a new world record for cases for the third consecutive day.

The Centre also directed customs officials to clear all import consignments, including life-saving drugs and oxygen equipment, used in Covid treatment on the highest priority.

In a statement, the finance ministry said 10 per cent basic customs duty on Covid vaccines as well as the duty and health cess on import of oxygen and oxygen-related equipment has been waived for three months.

Medical Oxygen attracts 5 per cent import duty, while the same for vaccines is 10 per cent.

The decision to exempt customs duty was taken at a meeting chaired by Prime Minister Narendra Modi to boost oxygen availability in the country, the Finance Ministry said.

The government had previously waived customs duty on imported Remdesivir injections and the drug's active pharmaceutical ingredients (API) to boost supplies.

The 16 oxygen and related equipment on which duty has been waived include oxygen concentrator along with flow meter, regulator, connectors and tubing, oxygen canister, filling systems, storage tanks, cylinders, including cryogenic cylinders and tanks.

Ventilators (capable of functioning as high-flow devices) with nasal canula; helmets for use with non-invasive ventilation, non-invasive ventilation oronasal and nasal masks for ICU ventilators too have been exempted from the import duty and health cess.

All these items so far attracted basic customs duty in the range of 5-15 per cent and a health cess of 5 per cent.

"This will boost the availability of these items as well as make them cheaper. The PM directed the Revenue Department to ensure seamless and quick customs clearance of such equipment," the statement said.

Earlier, Prime Minister Narendra Modi on Saturday called for ensuring that the COVID-19 pandemic is stopped from spreading to villages "by all means" and every person in rural areas is vaccinated.

Appreciating the role of panchayats in the management of coronavirus, especially in creating awareness, Modi asked the local leadership to work towards "complete implementation of guidelines" that are being issued from time to time.

"I have this confidence that if someone is going to emerge victorious first in this fight against the coronavirus, it is going to be India's villages, the leadership of these villages..... The people of the villages will show the way to the country and the world," the prime minister said at an event.

Ahead of the roll-out of vaccination of people aged between 18 and 45 from May 1, the Centre asked states to register additional private vaccination centres, ensure effective crowd management at sites and stressed on inoculation through "only online registration" for beneficiaries in the age bracket. Telangana and Jammu and Kashmir announced free vaccine for all, joining several other states like UP, Assam, Chhattisgarh, Bihar and Madhya Pradesh.