The uncertainty over the list of drugs that are to be included in the "VAT exempted" category of the Government of Delhi is likely to be over soon. The government is known to have shortlisted the life saving drugs that could be included in the exempted category. The list is likely to be notified in a week's time.

Anti-cancer drugs like 5FU, Tamoxifen, HydroxyUrea, Mitomycin Vincristine Sulphate, Cisplatin, Injectable Ondansetron, etc are expected to be in the exempted list. The other drugs that are likely to find mention in the list include hepatitis B vaccine, ethionamide, cycloserine, kanamycin, insulin preparations, heparines, streptokinase, anti rabies vaccine, CAPD fluid, salbutamol inhaler, budesonide inhaler, zidovudine, stavudine and lamuvidine. This exemption is also applicable to medical devices, ayurvedic and unani medicines. It was on April 1, 2005, the state announced its transition to VAT regime. It also brought drugs under the 4 per cent VAT category, thereby causing a price decrease in several drugs that were earlier covered under 8 per cent tax.

All vaccines approved by the World Health Organisation, artificial limbs, hearing aids etc have been exempted from VAT.