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Parliamentary Panel: Reduce GST on Drugs for Affordable Cancer Treatment in India

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Payal Mehta    28 June 2022

A parliamentary panel on Tuesday advised a reduction in Goods and Services Tax (GST) for pills and indigenous vaccines for the low-cost treatment of Cancer in the country. Health secretary Shri Rajesh Bhushan, Indian Council of Medical Research, DG Dr. Balram Bhargava, and Director General Health Services Shri Atul Goyal were also present in the meeting. The presentation preceded that meeting and stated that out of twenty-two AIIMS operating withinside the country only six facilities have a center for cancer treatment. It also showed that out of these six facilities, at least three facilities were only available on paper.

Sources also stated that the members urged the officials to declare cancer as a notifiable disease (A Notifiable Disease is any disease that is required by law to be reported to government authorities allowing them to monitor the disease and provide early warning of possible outbreaks) owing to the increased treatment price and stigma associated with it. Also, counseling for Cancer patients and their family members was suggested by some members in this meeting.

In India, cancer is the leading cause of death, with 7.84 lakh deaths recorded in 2018, and 13.92 lakh cases reported in 2020, according to World Health Organisation. At the national level, the average total cancer care expenditure was around Rs 1,16,218 with the state-wise pattern showing that the overall cost of cancer care in India varies from Rs 74,699 in Odisha to Rs 2,39,974 in the state of Jharkhand. In eight states, namely, Odisha, Tamil Nadu, Andhra Pradesh, Telangana, West Bengal, Chhattisgarh, Bihar, and Haryana, the overall cost of cancer treatment was under Rs 1 lakh. However, cancer patients spent from Rs 1 lakh to Rs 1.5 lakh on treatment in Punjab, Karnataka, Gujarat, Kerala, Madhya Pradesh, and Maharashtra. 

An important factor that needs to be highlighted is the percentage share of medical and non-medical expenditures such as cancer care expenses related to medical care, which include expenses on doctors’ consultancy, medicines, diagnostic tests, bed charges, and other medical services like blood transfusions and oxygen supplementation accounting for 90% of the expenditure. The residual 10% is on non-medical factors such as transportation, food, escort, and transport for other family members.

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