Amendment of ‘inverted duty structure’
The Indian diagnostics industry is eagerly looking forward to the correction of the ‘inverted duty structure’, in this year’s Budget.
Currently, the basic customs duty on diagnostics Instruments is 0% while that on the components and spare parts ranges between 7.5 to 15%, thereby representing a classic case of the ‘inverted duty structure’.
The import duty on instruments should be increased in a phased manner from 5% this year to 15% during the next couple of years.
Also Read: Strengthening the healthcare ecosystem
The import duty on all components and spare parts should be reduced to 2.5%.
This long-standing requirement of the industry will encourage local manufacturing of diagnostics instruments and reduce import dependence, which currently stands at a colossal figure of 80%.
Views expressed by Veena Kohli, President-Association of Diagnostics Manufacturers of India (ADMI) & CEO – Vanguard Diagnostics (P) Limited
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