Health allocation goes up slightly, dialysis made more affordable

The government in the proposed budget for fiscal year 2024-2025 has decided to reduce import duties on vital medical supplies to assist kidney patients dependent on dialysis. Specifically, the duty on importing dialysis filters and circuits has been proposed to be reduced from 10% to 1%.

Harun Or Rashid, president of the Kidney Foundation of Bangladesh, told TBS that the reduction in import duty would be welcomed by kidney patients, as it would render dialysis treatment more financially accessible for them.

Unveiling the budget proposals at the Jatiya Sangsad today, the finance minister also outlined additional measures aimed at improving cancer treatment, preventing dengue, rationalising concessional duties for referral hospitals, and updating regulations for ambulance imports.

In the proposed FY25 budget, Tk41,407 crore has been allocated for Health and Family Welfare, marking a Tk3,356 crore increase compared to the FY24 allocation. 

The FY25 health allocation constitutes 5.2% of the total budget, up from 5% in the previous fiscal year.

A new Harmonised System (HS) Code will be created for spinal needles, with a proposed import duty of 5%. This move is intended to streamline customs clearance processes and ensure a steady supply of this essential medical product.

To improve cancer treatment, the notification for concessional import facilities will include several new raw materials. This modification aims to streamline cancer treatment processes and reduce costs for patients.

The budget proposes a new notification to facilitate the import of dengue kits at concessional rates. This initiative aims to mitigate the alarming spread of the disease.

While referral hospitals have historically benefited from concessional duty rates for importing medical equipment and machinery, the budget suggests a reduction in these concessions. A 10% customs duty will now be applied to rationalise tax expenditures while continuing to support these vital institutions.

Speaking to The Business Standard, Dr AM Shamim, managing director of Labaid Group, expressed concern that the decision could strain foreign currency reserves as many patients may opt to seek treatment abroad. 

"Increased input costs would lead to higher service costs," he said.

To resolve challenges in customs assessments arising from the absence of a defined minimum length for imported ambulances, the finance minister has suggested establishing a minimum passenger cabin length of 9 feet. This adjustment to the HS code seeks to streamline import processes and ensure the availability of ambulances with sufficient size.

The minister proposed a special allocation of Tk2,000 crore to tackle health risks. 

Considering the importance of basic and applied research in medical sciences, the finance minister also proposed an allocation of Tk100 crore for the "Integrated Health Science Research and Development Fund."