Revise MRP of drugs given custom duty relaxations in budget: NPPA directs Pharma Firms, Marketers

While Form 2 is used for scheduled formulations, Form 5 applies to both scheduled and non-scheduled formulations.

Citing the Drugs (Prices Control) Order (DPCO) 2013, the NPPA emphasized that the MRP of drugs and formulations is inclusive of taxes and duties. “Any downward revision in duties and taxes should be reflected in the MRP, ensuring that the benefit of nil duty or duty reduction is passed on to consumers,” the order stated.

In the Union Budget for FY 2025-26, the Finance Minister announced a full customs duty exemption for 36 life-saving drugs and the inclusion of six additional medicines in the concessional category, now subject to a reduced 5% customs duty. These include Mepolizumab, used to treat severe asthma, as well as anticancer drugs like Asciminib and Daratumumab. Additionally, Brentuximab Vedotin, used in cancer treatment, and Ocrelizumab, prescribed for multiple sclerosis, have been added to the concessional duty list.

Also Read: 36 Essential Drugs Get Cheaper After Budget 2025 – Check Full List

According to a recent report in The Economic Times, these medicines are not manufactured in India and are marketed by major pharmaceutical companies such as MSD, Roche, GSK, AstraZeneca, Pfizer, and Takeda. The government has clarified that while most drugs attract a basic customs duty of 10%, certain life-saving drugs and vaccines are subject to concessional rates of 5% or nil.