The National Pharmaceuticals Pricing Authority (NPPA), under the Ministry of Chemicals & Fertilizers, Department of Pharmaceuticals, on February 10, 2026, issued an Office Memorandum in reference to Department of Revenue, Ministry of Finance Notification No. 02/2026-Customs dated February 01, 2026, whereby 17 life-saving drugs were exempted from Customs Duty. The memorandum highlights the regulatory implications of such exemption on drug pricing.
As per the Drugs (Prices Control) Order, 2013 (DPCO, 2013), the Maximum Retail Price (MRP) of drugs/formulations is inclusive of applicable taxes and duties. Accordingly, any reduction or exemption in duties and taxes must be reflected in the MRP so that the benefit of nil or reduced customs duty is passed on to consumers. The authority has emphasized that manufacturers and marketing companies must ensure compliance with this pricing adjustment.
Manufacturers and marketing companies dealing with the specified drugs are required to revise the MRP accordingly and submit details of such revisions through Form V. Further, they must issue revised or supplementary price lists to dealers, State Drugs Controllers, and the Government indicating the changes made.
[Notification No. 12(24)/2021/DP/NPPA/Div.II(Vol.II)-Part(1)]
