Tax cuts target cheaper lifesaving treatment

Finance Minister Amir Khosru Mahmud Chowdhury has proposed removing value-added tax (VAT) on the import of cardiac stents, dialysis filters, intraocular lenses and raw materials used in the production of cancer medicines.

The move aims to reduce the cost of essential medical devices and treatments, potentially making healthcare more affordable for low-income patients, reports bdnews24.com.

Placing the budget for the fiscal year 2026-27 on Thursday, he also suggested special tax rebates on some other medical items.

If the tax is waived as proposed, dialysis will get cheaper by Tk 800, each heart stent by nearly Tk 20,000 and each intraocular lens used in cataract surgery by about Tk 5,000.

Before that he told the House, "I propose to completely withdraw the existing 15 per cent customs duty and 5 per cent advance income tax imposed on the import of dialysis filters."

He also proposed imposing a 15 per cent import duty for adhesive (medical grade) and PVC sheet for blood bag (medical grade), for the "sake of the development" of the domestic medical equipment and parts manufacturing industry.

"Additionally, a 5 percent import duty will be charged for natural rubber latex (medical grade) and blood collection needle (medical grade). I propose to keep the rates in place until Jun 30, 2030."

The minister also proposed extending concessional tariff facilities for the local production of cancer medicines by adding nine new raw materials to the existing list.

Under the proposal, imports of these raw materials would be exempt from both customs duty and VAT.