NPPA asks companies to cut prices of three cancer drugs post tax relief

After the government announced Customs duty exemption and a reduction in GST rates on three key cancer drugs in the budget, the National Pharmaceutical Pricing Authority (NPPA) has directed drug manufacturers to reduce the MRP on these drugs to pass on the benefit to the consumer.

Earlier, the government had lifted the customs duty from Trastuzumab Deruxtecan, Osimertinib, and Durvalumab - the three key cancer drugs previously subject to 10% Customs duty.

Since these drugs will be imported duty free, the NPPA has asked manufacturers to reflect the downward change in the MRP and submit the information to the government.


"As per DPPCO 2013, the maximum retail price (MRP) of drugs/formulations is inclusive of taxes and duties, as applicable. Hence, any downward change in duties and taxes should be reflected in the MRP and benefit of nil duty/ reduction in duties/taxes should be passed on to consumers," it said in the office memorandum.

It has asked all manufacturers and marketing companies selling the drugs/formulations to revise the MRP of drugs/formulation on which Customs duty has been made nil and GST has been reduced.