AIIMS Doctors Propose Dual Strategy to Make Cancer Care More Affordable
Doctors from the All India Institute of Medical Sciences (AIIMS) in New Delhi have put forward a compelling argument in a recent correspondence published in the journal Frontiers in Public Health. They advocate for a dual approach of eliminating taxes on life-saving cancer drugs while simultaneously increasing levies on tobacco products. This strategy, they assert, could significantly reduce the financial burden of cancer treatment for patients across India.
Zero GST on Life-Saving Cancer Medications
The analysis is grounded in the recent GST Council recommendations, which propose reducing taxes on 33 essential, life-saving drugs—including several critical cancer therapies—from rates of 12 percent and 5 percent down to zero. This move aligns with broader governmental efforts to enhance healthcare accessibility. Earlier this week, Union Finance Minister Nirmala Sitharaman announced a reduction in the basic customs duty on 17 cancer drugs during her Budget presentation. This follows previous initiatives, such as last year's exemption of 37 medicines and 13 patient assistance programmes from customs duties, and reductions on three advanced anti-cancer therapies during the interim budget.
Dr. Abhishek Shankar, an oncologist at AIIMS and one of the authors of the correspondence, emphasized the importance of this tax relief. "Many of the new therapies have now shown survival benefits for certain cancers, so it makes sense to ensure more accessibility. While cutting the taxes may reduce the price of these expensive drugs only by a small margin in a single cycle, the savings can add up significantly over a period of two to three years that some of these drugs have to be used," he explained.
Higher Tobacco Taxes to Fund Cancer Care and Curb Consumption
In tandem with tax exemptions on drugs, the correspondence highlights the potential benefits of increasing taxes on tobacco products. Such measures are likely to drive down consumption, thereby preventing numerous tobacco-related cancers. The article cites a study conducted in four Indian states, which found that a 10 percent increase in cigarette prices could prevent 6.6 lakh deaths, lead to a gain of 11.9 million life years, and save USD 1.96 trillion in averted treatment costs. Additionally, it would save USD 762.5 million under the Ayushman Bharat health insurance scheme.
More ambitiously, a 50 percent hike in tobacco tax could avert 1.8 million deaths and save approximately Rs. 11.9 trillion over a ten-year period. "The new taxation slab provides increased opportunity to redirect the generated revenue for funding cancer care in the country," the article notes. Dr. Shankar further elaborated, "The taxes collected on tobacco, which is linked to 13 types of cancer, and alcohol, linked to seven types, can be used to address gaps in prevention, screening, diagnosis, and treatment of non-communicable diseases, especially cancers."
Call for Academia-Industry Collaboration
Beyond tax policies, the correspondence underscores the need for enhanced collaboration between academia and industry to develop novel cancer therapies within India. Dr. Shankar pointed out that most current industry-academia partnerships focus on conducting clinical trials for therapies developed elsewhere. "The only way to bring down the costs of such novel, targeted therapies is to develop them in India. There has to be more product development at academic institutes. Drug prices can be controlled if intellectual property rights are held by India, especially by an academic institution," he stated.
Currently, even when Indian companies manufacture biosimilars—generic versions of biologic therapies like immunotherapies—they must wait years for patents to expire. Fostering indigenous research and development could circumvent these delays and reduce dependency on imported medications.
Regional and Global Implications
The structural policy changes proposed by the AIIMS doctors are not only relevant for India but could also serve as a model for other countries in the region with similar socio-economic and disease burden characteristics. By adopting or adapting these measures, nations facing comparable public health challenges could enhance the affordability and accessibility of cancer care for their populations.
In summary, the correspondence from AIIMS doctors presents a holistic approach to tackling the cancer care crisis in India. By combining tax exemptions on essential drugs with increased levies on harmful products like tobacco, and by promoting domestic innovation in therapy development, these measures aim to create a more sustainable and equitable healthcare system. As cancer rates continue to rise, such policy interventions could prove pivotal in saving lives and reducing the economic strain on patients and the healthcare infrastructure alike.
