Withdrawal of custom duty exemption on key drugs faces flak

The withdrawal of customs duty exemption on imports of life-saving drugs came under criticism on Sunday with Biocon chief Kiran Mazumdar-Shaw saying levy of any kind of duty for these medicines does not resonate well with India's affordable healthcare mission.

Echoing Mazumdar-Shaw's view, the Organisation of Pharmaceutical Producers of India Director General Ranjana Smetacek said the government move will be detrimental to Indian patients depending on life-saving drugs. "We should, as a country, exempt life saving drugs from any kind of levies. Because after all you want affordable access and that is what you are basically touting as your healthcare mission then you know levying any kind of duty on life saving drug does not resonate well," Mazumdar-Shaw, the Biocon said. The prices of some medicines are likely to rise by 22 to 35 per cent if companies decide to transfer the customs duty to patients, industry analysts said.