New Delhi, Feb 5 (NationPress) The Goods and Services Tax (GST) exemption on essential cancer medications and the rise in taxes on tobacco products are pivotal actions aimed at elevating public health standards in India, as revealed by a recent study conducted by oncologists at the All India Institute of Medical Sciences (AIIMS).

In its 56th meeting held in September of the previous year, the GST council recommended a complete exemption of 33 lifesaving drugs, notably those used in cancer treatment, from GST, dropping the rate from 12% to zero, and also exempting three critical drugs for rare diseases and cancer from 5% to zero.

The findings indicate that these initiatives are enhancing healthcare affordability and accessibility, minimizing the financial burden for patients.

This week, Union Finance Minister Nirmala Sitharaman announced a reduction in the basic customs duty on 17 cancer medications during her Budget presentation.

“The recent GST reforms in India represent a significant advancement in making cancer treatment more affordable and accessible. By exempting 33 lifesaving drugs and rare disease medications from GST and lowering taxes on medical equipment, the government has alleviated the financial strain on patients and their families,” stated Dr. Abhishek Shankar from the Department of Radiation Oncology at AIIMS in an interview with IANS.

In another vital move, the GST council has also raised the tax rate for tobacco products to 40%, the highest for any category of goods in India.

The advantages of this taxation, which took effect on February 1 of this year, could lead to improved life expectancy, reduced treatment expenses, and prevention of premature deaths, as well as avoiding catastrophic health expenditures and poverty, according to the study.

Tobacco is recognized as the leading preventable cause of cancer worldwide. A report by the World Health Organization (WHO) and its International Agency for Research on Cancer (IARC) on World Cancer Day highlighted that tobacco accounts for 15% of all new cancer cases.

“Increasing taxes on tobacco products bolsters prevention efforts by discouraging usage and generating funds that can be allocated to public health initiatives,” Dr. Shankar added.

The study emphasized that these economic policy adjustments could serve as a model for other nations in the region facing similar socio-economic challenges and disease burdens, which may benefit from adopting or modifying these strategies concerning policy design, tax frameworks, and outcome assessments.

“While the timely transfer of benefits to patients is essential, these reforms reflect a well-rounded policy approach that supports treatment, promotes healthier behaviors, and enhances India’s commitment to equitable cancer care,” Dr. Shankar concluded.