A recent study led by oncologists from the All India Institute of Medical Sciences highlights the impact of GST changes on public health. The GST council’s decision to exempt 33 lifesaving drugs, including those for cancer care, from GST and increase taxes on tobacco products aims to make healthcare more affordable and accessible. These measures are reducing out-of-pocket expenses for patients and families, easing the financial burden.
Union Finance Minister Nirmala Sitharaman’s Budget presentation included a reduction in basic custom duty on 17 cancer drugs. Dr. Abhishek Shankar from AIIMS emphasized that these reforms are crucial in making cancer care more affordable and accessible. The government’s initiatives directly benefit patients and families by easing financial constraints.
In a significant move, the GST council raised the tax slab for tobacco products to 40%, the highest for any goods in India. This taxation change, effective from February 1, is expected to lead to gains in life years, reduce treatment costs, prevent premature mortality, and curb catastrophic health expenses. Tobacco, a major cause of cancer globally, accounts for 15% of new cancer cases.
Dr. Shankar highlighted that higher taxation on tobacco products plays a vital role in discouraging consumption and generating revenue for public health initiatives. The study suggests that these economic policy changes could serve as a model for countries with similar socio-economic and disease burden profiles. Implementing such measures can have positive outcomes in terms of policy effectiveness, tax structure, and health impact monitoring.
