Budget 2023: Healthcare tech industry body seeks cut in customs duty, removal of health cess on medical devices
Ahead of the Budget, Medical Technology Association of India (MTaI) on Wednesday urged the government to reduce customs duties and removal of health cess on imported medical devices. MTaI, which represents medical technology companies, appreciated the various reforms undertaken by the government during the previous year, but said that more was needed to be done as 80 per cent of the medical devices used are imported. MTaI Chairman and Director General Pavan Choudary said the customs duties and taxes levied on medical devices in India are one of the highest in the world and highest among the neighbouring countries which directly impacts patients’ affordability. “As the preparation for the Union Budget 2023 gets underway, we expect a correction in the customs duties and taxes levied on medical devices,” Choudary said. The sector, he added, requires more focus in government outlays and one way to achieve this is by increasing the public health spending to meet the current gaps in healthcare demand and supply. He also suggested the government should consider a separate budget allocation for promoting and marketing medical device sector globally. Budget 2023 Will Budget take a pause on bank privatisation?What income tax relief Budget can give for midd…Urban governance reforms likely to receive push…Will Budget hike threshold for TDS on income fr…Fiscal deficit an important variable to track i…India may peg nominal GDP growth at about 11% i…Budget 2023 should bring tax parity between mut…Budget 2023 expected to focus on job creationThe $178-billion chemical industry pins hope on…Reading the tea leaves: The macro compulsions u…Union Budget 2023: An accelerator for electric …Union Budget 2023: The way forward for cryptocu… MTaI said the high customs duty has adversely impacted the costs of medical devices in India and it should be reduced to 2.5 per cent. Also, the 5 per cent health cess ad valorem imposed on imported medical devices has further compounded the burden on the industry and should be removed. There is a need for focussed increase in public spending on health infrastructure especially in Tier 2, Tier 3 cities and rural areas, MTaI added. Finance minister Nirmala Sitharaman will unveil the Budget for 2023-24 on February 1.