How govt incentives fuelled growth in cancer drug industry
The NBR has exempted cancer drug production from VAT and waived import duties on raw materials and machinery, making it cheaper for companies to manufacture oncology drugs domestically.
Bangladesh's pharmaceutical industry has expanded rapidly in cancer drug production, fueled by government incentives that reduced manufacturing costs and encouraged local investment.
The National Board of Revenue exempted cancer drug production from value-added tax (VAT) and waived import duties on raw materials and machinery, making it cheaper for companies to manufacture oncology drugs domestically.
Earlier this year, withholding tax on raw material imports was also reduced from 5% to 2%, further easing the financial burden on producers.
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These policies encouraged companies such as Beacon, Incepta and Renata to set up specialised oncology facilities and develop a wider range of medicines, including biosimilars and active pharmaceutical ingredients (APIs).
As a result, Bangladesh now produces around 95% of the cancer drugs it needs, lowering prices significantly and improving access for patients.
According to manufacturers, monthly oncology drug sales now total around Tk50-55 crore. Had Bangladesh remained dependent on imports, annual spending would again exceed Tk1,000 crore.
The reduced dependency on imports also helps save foreign currency and support the country's growing capacity to export oncology drugs to neighbouring markets.
