Budget 2025: FM expands custom duty exemptions on lifesaving drugs

In a significant move to ease the financial burden on patients with severe chronic ailments, Union Finance Minister Nirmala Sitharaman announced the expansion of the list of lifesaving drugs and medicines fully exempted from Basic Customs Duty (BCD) in the Union Budget 2025-26.

This initiative aims to offer relief to those suffering from conditions like cancer, rare diseases, and other critical health issues.

As part of this initiative, 36 additional lifesaving drugs and medicines have been added to the fully exempted category. This includes advanced treatments for cancer, genetic disorders, and immune-related conditions, helping make these therapies more affordable for patients who need them most.

Additionally, six more lifesaving medicines have been moved to the concessional duty list, attracting a reduced customs duty rate of 5 percent.

In a further effort to increase accessibility, the government has also extended full exemption and concessional duty to bulk drugs used in the production of these medicines.

The expansion of exemptions also includes the incorporation of new medicines under Patient Assistance Programmes (PAPs). These programs play a vital role in providing free medicines to patients in need. The government has added 37 more medicines to the fully exempted list when supplied free of charge through 13 new PAPs.

The expanded exemption covers a variety of treatments, including cancer medications like Onasemnogene abeparvovec, Asciminib, Daratumumab, and Teclistamab. It also includes medicines for rare diseases such as Risdiplam, Spesolimab, Velaglucerase Alpha, and Agalsidase Alfa.

Moreover, treatments for severe chronic illnesses, including Alirocumab, Evolocumab, and Inclisiran, have been incorporated into the expanded list, making these life-saving medications more accessible to those who need them most.