Medical Technology Association of India expects reduction in GST and tariffs on medical devices

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Expectation of the Union budget for 2022: the organization MTaI noted that a reduction in the GST on the medical cold chain would widen the healthcare sector and improve accessibility for patients

In Budget 2021-22, Union Budget 2022: Medical Technology Association of India plans reduction of GST on medical devices

New Delhi: The Medical Technology Association of India (MTaI) has urged the government to reduce GST and tariffs on medical devices, cold chain units and spare parts used in healthcare devices in the next government budget. ‘Union.

The organization noted that reducing the GST on medical devices and medical cold chain from 12% to 5% would lead to the expansion of the healthcare sector through reduced costs improving accessibility for patients, MTaI said in a statement.

The organization, which represents research-based medical technology companies, has also sought to streamline tariffs and GST on spare parts.

Currently, customs duties and GST on spare parts of medical equipment are currently charged at a higher rate than the equipment itself, he added.

MTaI also suggested modifying the taxation of Cess santé ad valorem by removing the word “Ad-valorem” so that the tax is only applied at the Basic Customs Duty (BCD) rate.

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The organization also called for the allowance of the calculation of tax on CSR expenses, the tax exemption of research and development centers on medical devices, the creation of budgetary provisions for the training and development of workers of health (HCW) at all levels and the expansion of health insurance.

“The government seeks to improve the affordability of health care in India and extend its benefits to as many people as possible. However, high customs duties, burden of additional health care costs, lack of R&D incentives in the medical device industry and the unstreamlined tax regime, need to be addressed first,” said MTaI President Pavan Choudary.

High tariffs have had a negative impact on product costs in India, which contradicts the government’s efforts to provide low-cost health care to the masses through ambitious programs such as AB-PMJDY, it said. -he adds.

“Furthermore, since the tariff regime on most medical devices in the neighboring countries of Nepal, Sri Lanka and Bhutan is lower than in India, the tariff differential could lead to smuggling of low-value, bulk devices,” Choudary said. Noted.

The result will not only be a loss of revenue for the government, but also the patient who will be beset by products that are not backed by adequate legal and service safeguards, he added.

“We believe tariffs on medical devices and equipment should be reduced to 0-2.5%,” Choudary said.

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