EY on Budget 2025: Key amendments proposed in Union Budget 2025 for Pharma and life science sector

The Hon’ble Finance Minister presented the Union Budget 2025 on 01 February 2025 in the Lok Sabha. We bring you the key amendments proposed in Finance Bill 2025 with respect to Pharma and life science sector.

The Hon’ble Finance Minister presented the Union Budget 2025 on 1 February 2025 in the Lok Sabha.

The key highlights in respect of pharma and life science sector are:

  • New Income-tax bill to be introduced to make the tax laws simple to understand for both taxpayers and tax administrators with the objective of reducing litigation and moving towards tax certainty.
  • Rationalizing TDS/TCS provisions for ease of doing business.
  • Extension of income tax holiday for eligible startups incorporated up to 31 March 2030.
  • Existing exemption of Basic Customs Duty (BCD) on import of specified drugs and medicines (including life saving drugs and medicines) extended for period upto 31 March 2029. Additionally, Basic Customs Duty exemption has been extended to 36 lifesaving drugs and medicines, and a 5% concessional duty rate extended to 6 drugs and medicines, effective from 2 February 2025.
  • BCD exemptions to Specified drugs and medicines (supplied free of cost) under Patient Assistance Programmes (PAP) by pharma companies extended to 37 more medicines and 13 PAPs.
  • Day Care Cancer Centres to be set up in all district hospitals over the next 3 years, with 200 Centres planned for financial year 2025-26.
  • Overall focus on improvement of medical infrastructure, expansion of medical education, promotion of medical tourism and ‘Heal in India’ campaign and boost to private sector-driven R&D and innovation.

Download: Union Budget 2025 - Pharma and Life science sector highlights