New Delhi, July 18 (SocialNews.XYZ) Ahead of the upcoming Union Budget 2024-25, experts on Thursday called on lowering customs duty on import of global medical devices.
Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2024 on July 23.
Speaking to IANS, Pavan Choudary, Chairman, of the Medical Technology Association of India (MTaI) said, “We expect the government to lower customs duties on import of medical devices.”
He noted that compared to neighbouring countries of Sri Lanka and Nepal, where the customs duty is only about 5 per cent, India stands at 7.5-10 per cent.
In addition, India also charges “another ad valorem tax of 5 per cent and an educational cess of 1 per cent, which takes this to 13 to 16 per cent,” Choudary said.
An ad valorem tax is a tax derived from an assessed value.
“This is quite high keeping in mind that 70 to 80 per cent of the products which are used in India are imported. The cost finally is borne by the patient,” he said.
He noted that the difference “creates the opportunity for illicit smuggling of products which are high value but low bulk and this leads to losses in exchequer for the government.”
Sanjay Bhutani, Managing Director, Bausch & Lomb India & SAARC also urged for a reduction in customs duty.
“This budget should provide a much-needed relief to the medical device industry and there needs to be a reduction of customs duty at a minimum 2.5 per cent,” Bhutani told IANS.
He also called for the rollback of the additional 5 per cent ad valorem tax imposed on the import of medical devices.
Further, Choudary urged the government to focus on health insurance and include coverage of home care, and elder care.
“Home care comes at a fraction of the cost of hospital care,” he said, adding that their coverage will also address the scarcity of hospital beds in India.
Meanwhile, Bhutani said, “GST should not be charged on the goods and samples for healthcare products. This will give more purchasing power to individuals and provide some relief to the employed taxpayers.”
Source: IANS
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