Customs duty reduction on x-ray tubes may not immediately decrease costs

The reduction in customs duty on x-ray tubes and flat panel detectors, essential components of digital x-ray machines, is not expected to immediately decrease imaging costs. However, industry sources indicate that this move is intended to stimulate domestic manufacturing of these machines, which are extensively used in hospitals to detect bone fractures, pneumonia, and dental issues. The long-term goal is to reduce x-ray costs.

“These revised rates are expected to positively impact the x-ray machine industry by enhancing component availability at lower costs. This change is anticipated to boost the domestic medical device sector, contribute to component availability at lower costs and reduced healthcare costs, making advanced medical imaging more accessible and affordable,” said a government official.

Currently, most digital x-ray machines are imported either fully assembled or in parts for local assembly.

Government sources mentioned that a Phased Manufacturing Programme (PMP) was announced by the Department of Pharmaceuticals on January 22, 2021, to promote domestic manufacturing of medical x-ray machines and specified sub-assemblies/parts/sub-parts. This program proposed tariff changes in a phased manner to encourage local production.

However, the industry reported to the Department of Pharmaceuticals that the domestic manufacturing capacity for x-ray tubes and flat panel detectors is still underdeveloped. Consequently, they requested a revision in the PMP schedule for these items.

“After careful examination, it was determined that it may take at least two years to establish sufficient domestic capacity for x-ray tubes and flat panel detectors to meet the domestic demand. Subsequently, the Department of Pharmaceuticals requested the Revenue Department to adjust the rates, which has now been done,” said a source.

“Currently, digital x-ray machines imported from the US and China cost between Rs 18 lakh to over a crore. If domestic manufacturing is successful, these machines can be produced at much lower costs, eventually leading to reduced imaging costs. Additionally, this could ensure wider availability of x-ray machines, including at primary health centers across the country,” said Dr. Harsh Mahajan, chairman and founder of Mahajan Imaging and chairman of FICCI’s health services committee. Voice of HealthCare