Cancer medicines: Govt slashes source tax to 2%, withdraws VAT for raw materials
A study, conducted by the Institute of Health Economics of Dhaka University four years ago, found that the average cost of cancer treatment in Bangladesh is around Tk6.5 lakh
The National Board of Revenue (NBR) has reduced the existing source tax on imports of raw materials and products used to manufacture cancer prevention drugs from 5% to 2% in a bid to make cancer treatment more accessible in the country.
The revenue board also withdrew the value-added tax (VAT) on the imported ingredients for cancer medicines.
The NBR issued an SRO in this regard yesterday (2 March). The SRO was published on the Bangladesh Government Press website today (3 March).
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Cancer treatment facilities in Bangladesh are limited, and many are forced to seek advanced treatment abroad. However, following the ousting of the Awami League-led government through a mass uprising on 5 August 2024, the neighboring country India restricted visas for Bangladeshis, disrupting medical services for cancer and other complex diseases.
The interim government has taken several initiatives to make treatment for cancer and other complex diseases locally available, according to NBR sources.
Bangladesh faces a high burden of cancer patients. According to a report published in The Business Standard on 4 February, each year, around 300,000 new cases are diagnosed, and around 150,000 people die from the disease. Due to the lack of routine screening programmes, most patients are diagnosed at the middle or late stages – often when they start experiencing severe pain or require hospitalisation.
The National Cancer Institute and eight medical colleges offer cancer care, including radiotherapy. Some private-sector facilities exist and are gradually expanding, but they remain insufficient compared to the growing number of patients.
A study, conducted by the Institute of Health Economics of Dhaka University four years ago, found that the average cost of cancer treatment in Bangladesh is around Tk6.5 lakh. The cost varies widely, ranging from Tk3 lakh to Tk1 crore, with treatment within the country reaching up to Tk20 lakh.
Many patients cannot afford these expenses.
Another study revealed that 17.5% of cancer patients fall below the poverty line due to treatment costs. In the absence of health insurance, they are forced to sell assets, take loans, or seek financial help from others.
