Ahead of the Union Budget 2026–27, public health experts called on the Centre to introduce a progressive goods and services tax (GST) regime on antibiotics, especially last-resort drugs, to curb the growing threat of antimicrobial resistance (AMR).
In a letter to Union finance minister Nirmala Sitharaman, Hyderabad’s the president of the Infection Control Academy of India, proposed aligning GST rates on antibiotics with the world health organization’s AWaRe (access, watch, reserve) classification, describing it as a fiscally sound and life-saving reform.
Terming AMR a ‘perpetual pandemic,’ he warned that rising resistance is making routine infections harder to treat, driving up hospital stays and healthcare costs, and increasing risks for surgical patients, those undergoing cancer care, intensive care patients, and children.
Under the proposal, ‘access’ antibiotics used for common infections should continue to attract a low GST of about 5% to ensure affordability. ‘Watch’ antibiotics, which pose a higher resistance risk, should be taxed at 12%, while ‘reserve’ antibiotics meant only for confirmed multidrug-resistant infections would attract a GST of 24% or more.
The letter also flagged a market distortion, noting that last-resort antibiotics are often cheaper than basic diagnostic tests, encouraging empirical and irrational prescribing. “Regulation alone cannot fix these incentives,” he said, emphasising the need for fiscal policy to play a central role in antibiotic stewardship.
Public health experts also reiterated the demand that at least 4% of the union budget be allocated to health, stating that the proposed GST reform would be budget-neutral while strengthening India’s fight against AMR.
Source from: https://timesofindia.indiatimes.com/city/hyderabad/health-experts-call-for-progressive-gst-on-antibiotics-to-curb-antimicrobial-resistance/articleshowprint/126589846.cms
