Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:16 IST

Health and Nutrition Gets Major Boost in the Budget 2012-13;

Six Life Saving Drugs Exempted from Excise Duty

The Union Finance Minister ShriPranab Mukherjee, while presenting the Union Budget for 2012-13, has proposed to extend concessional basic customs duty of 5 per cent with full exemption from excise duty/ CVD to six specified life-saving drugs/ vaccines in this year’s budget. He proposed to reduce basic customs duty on soya protein concentrate and isolated soya protein to 10 per cent from the present 30 per cent or 15 per cent respectively. Basic customs duty and excise duty reduced on iodine from 6 per cent to 2.5 per cent. On probiotics, the basic customs duty is now 5 per cent reduced from 10 per cent.

DSM/YSK/nb/4

Exemption from excise duty expands to specified life saving drugs, alongside reduced customs duties for nutrition inputs. Specified life saving drugs and vaccines are placed under a concessional basic customs duty regime and granted full exemption from excise duty and countervailing duty. Tariff reductions were also announced for soya protein concentrate and isolated soya protein, combined reductions in customs and excise duties for iodine, and a lowered basic customs duty for probiotics, aimed at reducing tax-incorporated costs for health and nutrition inputs.