Amaravati: State Medical and Health Minister Satya Kumar Yadav said on Wednesday that with the reduced tax on life-saving drugs, it is estimated that the expenditure on medicines and surgicals purchased by the people will be reduced by Rs 716 crore and the purchases made by the state government by Rs 250 crores. In a press release, he informed that 99% of the medicines were in the 12% category and the center has reduced the tax on them to 5%. He also informed that the Centre has completely removed the tax rate on 33 drugs in the cancer and other rare categories which has come as a huge relief to public health.

The minister also mentioned that according to the state drug control administration, the tax burden of up to Rs 1,350 crore has been imposed on the people for purchase of medicines. “The GST burden on purchase of medicines has reduced by Rs 703 crore. Apart from this, the purchase of cancer and other rare drugs is estimated to be up to Rs 112 crore in the state. It is estimated that the 12% tax on these will be completely removed and about Rs 13 crore will be a relief to the victims. GST is included in the MRPs fixed by these entities." he said.

NTR Vaidya Seva Trust saves Rs 203.85 crore:

NTR Vaidya Seva Trust has given pre-authorisations worth Rs 4,077 crore for the financial year 2024-25. Out of this, Rs 2,308.56 crore is under medication and consumables. It is estimated that the reduction in prices will result in savings of Rs. 203.85 crores.