GST revamp to help cut cancer care costs

Recent reforms to India's Goods and Services Tax (GST) are set to significantly improve cancer care affordability, according to researchers from AIIMS, Delhi. In a commentary published in 'Frontier', oncologists Dr. Abhishek Shankar and Dr. Vaibhav Sahni highlight key changes, including the complete exemption of 33 lifesaving drugs, including essential cancer medications, from GST. Previously taxed at 12%, these drugs will now be available tax-free, alongside a reduction from 5% to zero for three critical drugs for rare diseases. Additionally, individual health and life insurance policies will no longer incur the 18% GST charge. The GST council's latest recommendations also include a notable increase in the taxation of tobacco products to 40%, aiming to discourage consumption while generating revenue for cancer care initiatives. Previous studies indicate that heightened tobacco taxes can lead to significant health benefits, particularly among low-income populations, reducing smoking rates and preventing thousands of premature deaths. Researchers estimate that a substantial tax increase could save millions in healthcare costs and avert millions of mortalities over the next decade. This comprehensive strategy demonstrates a vital shift towards addressing the financial burdens faced by cancer patients and enhancing the overall healthcare landscape in India.