Union Budget 2024

Article

Industry impact: Life Sciences and Health Care

  • Budget allocation: The Ministry of Health and Family Welfare has been allocated ~INR 900 billion and the Department of Pharmaceuticals has been allocated ~INR 40 billion. No new specific policy measures have been outlined for the pharmaceuticals and healthcare sectors.
  • Broader policy measures: The budget emphasizes research and innovation, skilling, industrial training and support for MSMEs, along with employment-linked incentives.
  • Research and innovation: Initiatives include operationalising the Anusandhan National Research Fund for basic research and prototype development. A framework is proposed to stimulate private sector-driven research and innovation at a commercial scale, backed by a funding pool of INR 1 lakh crore.
  • Medical infrastructure: Proposals include establishing medical colleges to boost development in Bihar.
  • Digital and technology: Proposals include scaling up Digital Public Infrastructure applications, including in the healthcare sector.
  • Saturation approach: The focus is on comprehensive coverage of eligible individuals through various health programmes.
  • Customs
  1. BCD rate revised from present applicable rates as follows:
    — Nil on three specified cancer drugs (Trastuzumab Deruxtecan, Osimertinib and Durvalumab)
    — Nil on polyethylene for manufacture of orthopaedic implants
    — 5 percent, 7.5 percent and 10 percent, respectively, in a phased manner on X-ray tube and flat panel detectors
  2. The present BCD exemption/concession under various customs notifications on specified products has been extended up to 31 March 2026 and 31 March 2029, respectively.
  • Goods and services tax: There are proposals such as extension of time limit to avail credit for FY17–18 to FY20-21 up to return filed until 30 November 2021; conditional waiver of interest and penalty in cases other than fraud, if the tax paid in full as specified, regularisation of non-levy or short levy where such non-payment or short-payment is due to common trade practices.
  • Income-tax: The budget proposes disallowance of settlement costs incurred for resolving contraventions of notified laws.
  • Other key tax and regulatory announcements: Proposals include simplifying the investment framework (FDI and ODI), reducing tax uncertainty and litigation (Vivad se Vishwas, limitation on reopening assessments) and abolishing angel tax.
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