Patients To Bear The Brunt On Expensive Medical Devices

PSM News /

New Delhi, 2 Feb 2020:

 

Patients may need to shell out more for diagnostic tests and medical procedures. Prices of critical medical devices are expected to increase marginally, with imposition of a 5% health cess on their imports.

 

The over $5 billion industry is heavily import-dependent with about imports of 70-80%, including imaging equipment (CT scanners, MRI scanners), cardiac stents, syringes, surgical gloves, and critical care equipment cornering a large share. With the imposition of a health levy, the effective rate of duty is expected to increase to 5.25% and 7.87% from 5% and 7.5% respectively, which will increase their prices. This may be passed on to patients, an industry representative said. At present, medical devices are taxed at slabs of 0%, 5% and 7.5%.

 

The domestic industry, which has been long demanding a level-playing field, and incentives for growth, is disappointed with the meagre increase of 0.25%. It says it’s at a disadvantage, and is given "step-motherly treatment’’ in government procurement, due to lower-priced imports.

 

"We were expecting the government to move forward on promised reforms and anticipated conducive measures to boost domestic manufacturing of medical devices. It is frustrating that against our expectations, the government has not included any measures to help end the 80-90% import dependence forced upon us and an ever- increasing import bill of over Rs 38,837 crore, Rajiv Nath, forum coordinator Association of Indian Medical Device Industry (AiMeD) told TOI.

 

Only a meagre increase of 0.25% to protect domestic manufacturing and motivate traders to become manufacturers, says GSK Velu CMD of Trivitron Healthcare which manufactures imaging and screening equipment, said.

 

Overall, the healthcare sector is enthused with initiatives including using tax proceeds to fund government hospitals in Tier I & II cities under Ayushman Bharat, handholding support for pharmaceutical industry for technology upgradation and R&D. The Times Of India