Government waives custom duty on raw materials used for various Covid testing kits: Report
The latest move is seen a part of its strategy to prepare the domestic industry for a potential third wave of the Covid-19 pandemic
The government has waived custom duty on Amphotericin B, an anti-fungal drug imported along with other materials for manufacturing Covid test kits, Hindustan Times reported Wednesday. The latest move is seen a part of its strategy to prepare the domestic industry for a potential third wave of the Covid-19 pandemic.
According to the report, raw materials used to manufacture Amphotericin B have been exempted from the customs duty till August 31, 2201. Other raw materials used in manufacturing Covid testing kits are exempt from the custom duty till September 30.
Tax reduction in drugs
In a move to help people fight the Covid-19 pandemic and reduce financial burden, the GST council removed GST on two medicines, including Amphotericin B on June 12. This also includes slashing tax rates on 15 other items such as drugs, medical grade oxygen and testing kits to 5% for the next three and a half months, the report added.
It is expected that the Ministry of Health and Family Welfare and the department of pharmacueticals would recommend a 5% flat GST rate on all Covid related drugs. Presently, drugs like Remdesivir and Heparin has seen a slash in GST rate from 12% to 5%. Whereas Amphotericin B and Tocilizumab GST rates have been reduced from 5% to zero.