Ahead of the Union Budget 2026, the Medical Technology Association of India (MTaI) has urged the government to reduce the heavy tax burden on medical devices. With cumulative levies reaching nearly 30%, the industry warns that current rates inflate healthcare costs and hinder affordability, especially for India’s ageing population.
With Finance Minister Nirmala Sitharaman set to present the Union Budget 2026 on February 1, the medical technology sector is pressing for fiscal reforms to make healthcare more affordable. The Medical Technology Association of India (MTaI) has called for rationalisation of duties and taxes on essential medical devices, citing their direct impact on patient costs.
Key Highlights
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Tax Burden: Current levies include basic customs duty, health cess, surcharge, and GST, cumulatively reaching up to 30% on critical devices.
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Impact on Patients: High taxes inflate costs of surgeries, diagnostics, and management of non-communicable diseases, pushing families into financial strain.
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Industry Demand: MTaI seeks targeted relief to encourage wider adoption of advanced medical technologies.
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Policy Alignment: Relief measures would support India’s healthcare goals of affordability, inclusivity, and improved access.
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Leadership View: MTaI Chairman Pavan Choudary emphasized that easing taxes will directly reduce healthcare costs and improve patient outcomes.
The industry’s appeal highlights the urgent need for fiscal intervention to balance innovation with affordability, ensuring that India’s healthcare system remains accessible to all.
Sources: Deccan Herald, Business Standard, Financial Express