The Goods and Services Tax Council, ie GST Council, has decided to keep medicines for cancer and rare diseases out of the purview of GST tax. These include the cancer drug dinutuximab imported from abroad, which costs Rs 36 lakh. GST of 12 percent had to be paid on this. Along with this, the council has also recommended tax relief on special food products given to patients with rare diseases. GST of five to 12 percent had to be paid on these imported products. This is a relief decision for the patients of cancer and rare diseases.
Cancer is a serious disease. But, the cost of its treatment is like an economic disaster for the patient and his family. Such poignant advertisements are often seen on the internet or in other places, in which parents beg for help for the treatment of innocent children. Last year, the Rajya Sabha Standing Committee on Health had said in its report that about 40 per cent of cancer patients admitted to hospitals manage the expenses by borrowing, or by selling assets or by taking financial help from friends and relatives.
The committee said that three times more money has to be spent in private hospitals than in government hospitals. A major part of the expenditure is of expensive medicines. It is told in the reports that a cancer patient has to spend about 50 thousand to one lakh rupees every month on medicines. And, one of these medicines may have to be taken for the whole life. The issue of cost of cancer drugs is a challenge for the whole world. Big pharmaceutical companies are also accused of profiteering. But they argue that billions of dollars are spent in making medicines. Also, money is also needed to continue research on new drugs.
However, a report by the World Health Organization states that research spending has little or no impact on drug prices. The organization said that pharmaceutical companies are only focused on profits and due to this patients do not get the full benefit of the achievements of the medical field. Another issue is that of patents, due to which a monopoly-like situation is created in the market of medicines. However, the decision not to impose GST on medicines for cancer and rare diseases is commendable. For an effective solution to the problem, efforts should be made to produce these medicines in the country itself.
