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Budget 2026: Medicines for 17 cancers to become cheaper 
The new fiscal plan aims to make cancer treatment more affordable

Budget 2026: Medicines for 17 cancers to become cheaper 

Feb 01, 2026
01:00 pm

What's the story

Finance Minister Nirmala Sitharaman's latest Budget has announced major changes in customs duties, especially for medicines. The new fiscal plan aims to make cancer treatment more affordable by exempting basic customs duty on 17 essential cancer drugs and medicines. Additionally, seven rare diseases will also be covered under these duty exemptions for drug, medicine, and food imports.

Statement

Tax exemption for 7 more rare diseases

"To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add 7 more rare diseases for the purposes of exempting import duties on personal import of drugs, medicines and food for special medical purposes used in their treatment," she said.

Travel savings

TCS rate slashed on overseas tour packages

The budget also seeks to make foreign travel more affordable by slashing the TCS rate on overseas tour packages from the current 5% and 20% to just 2%, without any amount limit. Sitharaman also proposed a similar reduction for education and medical purposes under the liberalized remittance scheme, bringing down the TCS rate from 5% to 2%.

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Health 

North India to ge new NIMHANS 

The budget also promised a second National Institute of Mental Health and Neurosciences (NIMHANS) in North India. Sitharaman also announced the setting up of one girls' hostel in every district of the country and three new AIIMS. Along with the new institutes, Sitharaman also announced plans to upgrade AYUSH pharmacies and the WHO Global Traditional Medicine Centre (GTMC) in Jamnagar, Gujarat.

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