FROM PAGE 2

increase in the health budget,” Shimul added.

The eventual benefit to citizens of the big block allocation will depend on how quickly and effectively projects are selected, approved and implemented, analysts said.

The budget also proposes several tax benefits for imported medicine raw materials, medical equipment and healthcare-related products, which would help reduce out-of-pocket expenditure, the main source to fund healthcare in Bangladesh.

The tax concessions have the potential to reduce the cost of medicines, diagnostic tests and healthcare services for patients.

But the benefits will reach consumers only if manufacturers, importers and healthcare providers pass on the reduced costs, supported by effective monitoring from the health authorities, sector insiders said.

A complete withdrawal of the existing 15 percent VAT and 5 percent advance income tax on imported dialysis filters has been proposed. The measure is expected to reduce the cost of each dialysis session by around Tk 800 for kidney patients.

The finance minister also proposed a full exemption from the 10 percent supplier-level VAT on imported cardiac stents and intraocular lenses used in eye surgeries. As a result, the price of each cardiac stent could fall by up to Tk 20,000, while the cost of each intraocular lens may decrease by around Tk 5,000.

In another relief measure for kidney patients, the government proposed waiving the 7.5 percent advance tax on imports of blood tubing sets used in haemodialysis, which is expected to further reduce dialysis costs.

To support the domestic pharmaceutical industry, the budget proposes duty- and VAT-free imports of nine additional raw materials used in the production of cancer medicines.

The government also proposed removing import duties on 51 new raw materials used to manufacture active pharmaceutical ingredients (APIs) locally and granting zero-duty facilities for 17 additional pharmaceutical raw materials to help sustain export growth.

The budget further proposes concessional duty facilities for manufacturers of medical equipment and components.

Shimul welcomed the initiatives but said past experience suggests that only a small portion of the benefits reach consumers.

“The government lacks the capacity to accurately assess how much benefit producers receive from tax rebates and how much of that benefit should be passed on to consumers -- the government has to ensure that people actually benefit from these initiatives.”