With government's recent action in removing customs duty waiver and imposing excise duty on certain lifesaving drugs including for cancer, HIV, haemophilia, diabetes and infections may result in price increases between 10-25 per cent on both imported and indigenously-produced drugs.

This will have a bearing on the treatment costs and restrict key drugs for patients. The move is in contradiction of government's efforts to improve healthcare according to experts. Even those drugs which are part of the National List of Essential Medicines (NLEM) have not been spared.

In a notification on January 28, the government withdrew the concessions on customs duty on 76 key drugs, claiming it necessary "in public interest". Of this, 47 are part of NLEM 2015. MNCs and domestic generic firms are still calculating the impact on their portfolio of drugs, and are yet to take a call on the increase in prices.

The main criteria for inclusion of a medicine in the NLEM are usage in public health and cost effectivity. Though many of the cancer and HIV drugs on which exemptions have been withdrawn have generic versions in the market, there will be a price impact on both imported and indigenously produced drugs of 10-25 per cent.

The medicines on which customs duty will now be imposed include the ones used for treating kidney stones, chemotherapy and radiotherapy, life-threatening heart rhythm disorders, Parkinson's disease, bone diseases, antibiotic to treat infections, leukemia, allergies, arthritis and lupus.