Government Reduces Tax on Cancer Drug Raw Materials to Enhance Affordability

In an effort to make cancer treatment more affordable, the government has reduced the withholding tax on imported raw materials used in cancer medication from 5% to 2%.

This decision was announced in a notification issued on Sunday, March 2, signed by National Board of Revenue (NBR) Chairman Md. Abdur Rahman. The notification became publicly known on Monday, March 3.

According to the notification, “In exercise of the powers conferred under sub-section (1) of section 76 of the Income Tax Act, 2023 (Act No. 12 of 2023), the withholding tax rate applicable to imported raw materials used in the production of cancer drugs, as specified in SRO No. 176-Law/2024/28/Customs dated May 29, 2024, is hereby reduced from 5% to 2%. This order shall take immediate effect.”

On January 15, the Ministry of Health recommended lowering the price of cancer drugs while increasing the price of multivitamin and multimineral medicines. The recommendation was conveyed in a letter sent to the NBR Chairman by Health and Family Welfare Adviser Noorjahan Begum.

In the letter, the adviser stated that reducing the Advance Income Tax (AIT) and Advance Tax (AT) on cancer drugs and raw materials while imposing AIT and AT on multivitamin and multimineral medicines could increase government revenue by BDT 3.4 to 3.5 billion.

She further highlighted the rising number of cancer patients in Bangladesh, emphasizing that the high cost of treatment often pushes impoverished families into financial ruin.

The letter also mentioned that while 30 pharmaceutical companies in Bangladesh manufacture essential anti-cancer drugs, all raw materials for these medications are 100% imported. The production and import costs, including taxes on raw materials, are borne by manufacturers and importers, ultimately raising drug prices and burdening the country's poor patients.