New Delhi: The government is likely to waive 10 per cent customs duty levied on imported Covid-19 vaccines. This will be done in a bid to keep low the cost of overseas Covid-19 vaccines that are being eyed to supplement domestically made shots ahead of opening COVID-19 vaccination to all citizens over 18 years of age, sources said.
Russia’s Sputnik V vaccines are due to arrive this month or latest by next month. Manufacturers like Moderna and Johnson and Johnson have been urged to seek emergency use approval in India.
The government presently levies 10 per cent customs or import duty plus a 16.5 per cent I-GST and social welfare surcharge on vaccines coming from overseas. These taxes would make the imported vaccines costlier than the ones made by Serum Institute of India (SII) and Bharat Biotech. “A customs duty wavier is being considered,” a source aware of the matter said. Another source said a decision is likely to be made ‘very soon’. This will be done to speed up the COVID-19 vaccination process, he added.
The government earlier this month allowed emergency use of imported vaccines to curb spread of coronavirus infections.
Sources said discussion on duty exemption on vaccines started sometime in December last year. At that time overseas manufacturers such as Pfizer sought approval to supply its vaccines to India.
The Finance Ministry and its indirect tax collection arm had done some preliminary calculations on the implications of a duty waiver. However, a decision was put off until the government approved use of imported vaccines, the sources said.
The government Monday allowed citizens over the age of 18 years to receive COVID-19 vaccinations from May 1. It currently regulates the sale and purchase of all Covid-19 shots in India.