The reduced duties for selected few HIV / AIDS, cancer drugs and life saving drugs, proposed in the Union Budget 2006-'07 is to benefit 32 formulations. The government announcement had disappointed the entire industry, which was hoping for a much bigger tax sop from the Central Government. The hope was based on the fact that the chemicals and fertilizers ministry had submitted a long list of drugs that should be brought under lower duty net.

The drugs that have currently been brought under the 5% duty are Didanosine, Efavirenz, Indinavir, Nelfinavir, Nevirapine, Stavudine, Abacavir Sulphate, Lopinavir, Tenofovir Disoproxil, Emtricitabine, Azathioprine, Antinomycin D, Cisplatin, Cytosine Arabinoside (Cytarabine), Danazol, Doxorubicin, Etoposide, Flutamide, Ondansetron, Paclitaxel, Tamoxifen Citrate, Vinblastine Sulphate, Vincristine, Eurocollins Solution, Everolinus tablets/dispersible tablets, Poractant alfa, Exemestane, Recombinant Human Interferon beta 1-a, Troponin-I whole blood test kit, Blower/mister kit for beating heart surgery, Fluoro Enzyme and Immunoassay Diagnostic kits. The other sop proposed by the Central Government was the exemption on the Fringe Benefit Tax (FBT) on physician's samples and medical equipment given to doctors.

The changes are to take effect after the passage of the Finance Bill during the current session of the Parliament. It should be noted that the Part A of the Pharmaceutical Policy 2006 had wanted complete tax exemption on drugs for several life threatening diseases like HIV / AIDS and cancer.