In a major relief for cancer drug manufacturers, the National Board of Revenue (NBR) has exempted advance tax (AT) on the import of raw materials used in oncology medicine production. This decision, announced in an official notification earlier this month, is expected to lower drug production costs and make life-saving treatments more affordable reportedly.
The tax relief comes after the NBR’s income tax department slashed the tax at source on these imports from 5% to 2%, a move that has been warmly welcomed by pharmaceutical manufacturers.
Previously, cancer drug producers were burdened with a 5% advance tax under the VAT system when importing essential ingredients, said Barrister Md Bodruzzaman Munshi, Second Secretary (VAT Act & Rules) at the NBR. However, following recommendations from the health ministry, the government has stepped in to ease this financial strain.
Read more:Â Bangladesh’s Pharma Exports Surge, But February Drop Raises Questions
This initiative comes at a critical time, as cancer cases continue to surge in Bangladesh. With an estimated 106 cases per 100,000 people, the country is witnessing a significant health crisis—one that disproportionately affects men.
A recent study by Bangabandhu Sheikh Mujib Medical University (BSMMU) found that:
Cancer accounts for 11.9% of all deaths in Bangladesh each year
52.9 new cases are diagnosed per 100,000 people annually
As demand for oncology medicines rises, several Bangladeshi pharmaceutical companies are ramping up production for both domestic use and exports. By removing tax barriers, the government aims to support local manufacturers in expanding access to cancer treatments – offering hope to thousands of patients battling the disease.
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