Daijiworld Media Network - New Delhi

New Delhi, Aug 25: The Indian Medical Association (IMA) has welcomed the recent decision by the GST Council to reduce Goods and Services Tax on cancer-related and other essential medicines, calling it a "commendable step" toward making healthcare more affordable and accessible for millions of patients across India.

In a statement released Monday, the IMA said the move reflects the government’s growing commitment to strengthening the country’s public health infrastructure and supporting patients dealing with serious illnesses such as cancer, chronic diseases, and rare infections.

The recent GST revisions propose slashing tax rates on critical drugs from 12% to 5%, and in some cases, bringing them down to zero. Medicines used in the treatment of rare diseases are also reportedly being considered for full exemption. The changes are part of a broader push to reduce the financial burden of high-cost therapies on patients and their families.

While lauding the decision, the IMA urged the government and GST Council to expand exemptions and include a wider range of essential and lifesaving medications. It recommended that drugs used for chemotherapy, immunotherapy, and targeted cancer therapies be fully exempt from GST, along with insulin and oral medications for diabetes, antihypertensives, and cardiac drugs.

The association also called for exemptions on medicines for chronic kidney disease, collagen vascular diseases, thyroid conditions, asthma, COPD, osteoporosis, and severe infections. Intravenous immunoglobulin and treatments for haematological conditions such as haemophilia and myelodysplastic syndromes were also flagged as deserving zero-GST status.

Beyond pharmaceuticals, the IMA pushed for a reduction in GST on medical equipment to help lower operational costs for healthcare facilities. It also called for the complete removal of GST on hospital beds to ensure the affordability of inpatient care.

In a key recommendation aimed at increasing financial protection in healthcare, the IMA proposed exempting health insurance premiums from GST, arguing that doing so would reduce the economic strain on families and promote wider adoption of insurance coverage during medical emergencies.

With healthcare affordability and accessibility at the forefront, the IMA's suggestions aim to further align tax reforms with public health priorities.